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LSDefine
Simple English definitions for legal terms
subscribed capital
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A quick definition of subscribed capital:
Subscribed capital refers to the total value of stock for which people have agreed to purchase. It is the amount of money that investors have committed to invest in a company. This is important for businesses to know because it helps them understand how much money they have available to use for their operations and growth.
A more thorough explanation:
Subscribed capital is the total value of stock for which there are subscriptions or contracts of purchase. It refers to the amount of money that investors have agreed to pay for shares in a company.
For example, if a company issues 100 shares of stock at $10 per share, and investors agree to purchase 80 of those shares, the subscribed capital would be $800 ($10 x 80 shares).
This illustrates the definition of subscribed capital because it shows the total value of stock that investors have committed to purchasing. It is important for companies to keep track of their subscribed capital because it affects their financial standing and ability to raise funds.