Share capital
The term “share capital” refers to the amount of money the owners of a company have invested in the business as represented by common and/or preferred shares.
Share capital is different from shareholders’ equity because it does not include retained earnings: It is made up only of the equity owners have put into the company by purchasing shares.
More about share capital
The balance sheet below shows ABC Co. had $50,000 in share capital ($25,000 in common shares and $25,000 in preferred shares) as of March 31, 2012.
