The part of issued share capital that the company has asked the subscribers to pay for is?

Answer Details

The part of issued share capital that the company has asked the subscribers to pay for is called-up capital. When a company issues shares to the public, it is essentially selling ownership stakes in the company to investors. The total value of these shares is known as the issued share capital. However, not all of this capital may be immediately paid for by the investors. The portion of the issued share capital that the company has called upon the investors to pay for is called the called-up capital. For example, if a company issues 1,000 shares at a par value of $10 per share, the total issued share capital would be $10,000. However, the company may initially only ask investors to pay for half of the shares, or 500 shares, which would make the called-up capital $5,000. The remaining 500 shares would be considered uncalled capital, as the company has not yet asked investors to pay for them. Once investors have paid for their called-up shares, this portion of the issued share capital becomes the paid-up capital. The paid-up capital represents the actual amount of capital that the company has received from investors and can use for its operations and growth. Overall, the called-up capital represents the portion of the issued share capital that the company has requested payment for, while the paid-up capital represents the amount of capital that has actually been paid by investors.