What is the owner/s of a company called?
Are called members (or shareholders) and those shareholders purchase shares in the company. This is their portion of the company.
What is the shareholder's portion of the company called?
Equity, and shareholdings are shown in the Statement of Financial Position (Balance Sheet), in the equity section, under the heading of ‘share capital’.
Share capital
Share capital refers to the total shares issued to all shareholders of the company. A company with share capital must record all the shares issued.
What is the record of shares called?
This record is called the register of members or share register.
What is the second type of equity in a company?
Are amounts set aside, or reserved, for use in a company.
What is the most important type of reserve account?
The cumulative profits or losses that the company makes. These cumulative amounts are held in the business and are referred to as the retained earnings.
What makes up a company's equity?
Retained earnings, other reserves and share capital together make up the equity of a company.
What happens when a shareholder invests in a company?
They purchase share capital (equity). They make a return on their shares and receive funds from the company in the form of dividends, which are cash payments made as either a percentage of the share capital paid amount or as a dollar amount per share.
