Equity is the number of shares issued by a joint-stock company, or the capital invested by investors according to the number of shares of a joint-stock company. Divided into rated share capital and issued share capital. Rated share capital refers to the total share capital authorized by the company's articles of association or approved by the competent securities department. The part sold is called issued share capital, and the difference between the rated share capital and issued share capital is called unissued share capital. The total share capital of a joint-stock company shall generally not be less than its registered capital.
If the registered capital is 30 million, the total share capital after issuance shall not be less than 30 million.
Extended data
Shares are also called shares, and share capital refers to all shares authorized by the articles of association and representing the ownership of the company, including both common shares and preferred shares, and is one of the two components that constitute the shareholders' equity of the company. The scale of share capital will increase with the issuance and allotment of shares, but the market price will not change, which is due to the ex-rights after the issuance of shares.
Equity refers to the rights and interests of shareholders in the company, which is often used to refer to stocks. The share capital of the company shall be obtained by issuing shares within the approved total share capital. It is worth noting, however, that the proceeds from issuing shares are often inconsistent with the total share capital. If the company's income from issuing shares is greater than the total share capital, it is called premium issuance. Less than the total share capital is called discount; If it is equal to the total share capital, it will be issued at face value. China is not allowed to buy shares at a discount. Where shares are issued at a premium, the company shall record the portion equivalent to the face value of the shares in the title of "equity", and the rest shall be recorded in the title of "capital reserve" after deducting the issuance expenses, commissions and other issuance expenses.