<p>"Stated Capital" is the <em>nominal</em> value (or "par" value) of all the outstanding shares of a company.  </p>

<p>When a company issues shares each has a nominal price, say EUR $1.00$. But of course they may be sold for more (as far as I know, it is forbidden to issue a share and receive an amount less than its nominal value. Afterwards of course, the share of a company may be re-sold for less than its nominal value -but not when it is issued originally).  </p>

<p>If it is sold for more, say EUR $1.50$, then the EUR $1.00$ is designated and presented as "Shareholder's Capital" in a specific line in the financial statements (usually the first line of Equity), while the "above par" value, the remaining EUR $0.50$, goes into another Equity line.</p>

CC BY-SA 3.0
2015-04-16T18:07:53.377Z
2015-04-16T18:07:53.377Z
Alecos Papadopoulos
<p>What is <strong>Stated Capital</strong>? I have found some definitions on the Google, but I have not been able to comprehend it from this definitions. Could somebody explain it to me? </p>

CC BY-SA 3.0
2017-09-20T01:19:15.907Z
This question is a perfect fit for the Accounting site (currently a proposal in Area 51: https://area51.stackexchange.com/proposals/113560/accounting?referrer=FNOG9_mXNYnhlAdnl9FE8w2 )
Jacob
<accounting>
What is "Stated-capital"?
Adam
# What is "Stated-capital"?

(Asked by: username_0 on 2015-04-16)

What is **Stated Capital**? I have found some definitions on the Google, but I have not been able to comprehend it from this definitions. Could somebody explain it to me?

**Tags:** accounting

> **Comments:**
> **username_1**: This question is a perfect fit for the Accounting site (currently a proposal in Area 51: https://area51.stackexchange.com/proposals/113560/accounting?referrer=FNOG9_mXNYnhlAdnl9FE8w2 )  

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## 1 answers

### Answer by username_2 on 2015-04-16. Score: 1 | Accepted answer

"Stated Capital" is the *nominal* value (or "par" value) of all the outstanding shares of a company.

When a company issues shares each has a nominal price, say EUR $1.00$. But of course they may be sold for more (as far as I know, it is forbidden to issue a share and receive an amount less than its nominal value. Afterwards of course, the share of a company may be re-sold for less than its nominal value -but not when it is issued originally).

If it is sold for more, say EUR $1.50$, then the EUR $1.00$ is designated and presented as "Shareholder's Capital" in a specific line in the financial statements (usually the first line of Equity), while the "above par" value, the remaining EUR $0.50$, goes into another Equity line.


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