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Difference between Net worth and share capital
As you explained , Net worth of a company is the share holder Equity.
But in the Debt/ Equity Ratio .
The Equity here is the share capital .Can you more elaborately explain this share capital.
Why and how will a Promoter put money in the business which is listed and its mapping as a share capital.
Feb 13 2013 09:06 PM
Promoters investment in the company (share capital) is only 1 component of shareholder equity. There are other components to shareholder equity such as Retained Earnings etc
Feb 18 2013 10:43 PM
Promoters invest money in the company during the early stages to fund the company's operations. After a few years promoters and other external investors can invest more cash as share capital.
Feb 18 2013 10:45 PM
networth is an asset and share capital is a liability to the company
Dec 20 2013 09:12 PM
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Effect of Stock Price on a net worth?
what is the meaning of market capitalization? is it the same as net worth of a company?
Is the difference between networth & market cap is that of book value & market price?
Net Income / Net Worth
Why net worth is known as shareholder's equity?
Is equity shareholders capital or networth?
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