In the United States, the first IPO was the public offering of Bank of North America around 1783.
How much capital is required to share first call on shares?
- Share Capital A/c Dr. 51,000 To Discount on issue of shares A/c 6,000 To Share First Call A/c 15,000 To Share Forfeiture A/c 30,000 (600 shares forfeited after first call on non-payment of first call money) Illustration 15
What is a share?
- Shares, refer to the units into which the total share capital of a company is divided. Thus, a share is a fractional part of the share capital and forms the basis of ownership interest in a company. The persons who contribute money through shares are called shareholders.
How many shares did Eastern company limited issue to the public?
- Eastern Company Limited issued 40,000 shares of Rs. 10 each to the public for the subscription out of its share capital, payable as Rs. 4 on application, Rs. 3 on allotment and the balance on Ist and final call. Applications were received for 40,000 shares. The company made the allotment to the applicants in full.
Is the issue of shares basic to the capital of a company?
- Thus, the issue of shares is basic to the capital of a company. Shares are issued either for cash or for consideration other than cash, the former being more common.
The Dutch East India Company (VOC) held its 'initial public offering' (IPO) in August 1602. It was the first of its kind in world history and therefore a key event in financial history, and the history of the capitalist world.