Part payments made on allotted shares by subscribers is usually the

Assessment: JAMB UTME - Commerce - 2014 Subject: Commerce

Question 1 Report

Part payments made on allotted shares by subscribers is usually the
Answer Details
The correct answer is called-up capital. When a company issues shares, it raises capital by selling a portion of ownership in the company to investors. The total amount of shares that are issued is called the "issued capital". However, not all of the issued capital has to be paid by the investors immediately. The company may ask the investors to pay only a portion of the total cost of the shares at the time of allotment, with the remaining amount to be paid at a later date. This portion of the capital that has been paid by the investors is referred to as the "called-up capital".

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