Osakeosakepääoma

Osakeosakepääoma, often translated as share capital or stock capital, represents the total nominal value of all shares issued by a company. It is a fundamental component of a company's equity and is recorded on the balance sheet. When a company is incorporated, it issues shares to its founders or initial investors. The price at which these shares are issued, multiplied by the number of shares, constitutes the initial share capital. Subsequently, if the company issues more shares, for example, through a rights issue or a public offering, its share capital will increase.

Share capital serves as a primary source of funding for a company and acts as a buffer against losses. In many jurisdictions, there are legal requirements regarding the minimum amount of share capital a company must have. This capital is not necessarily the total amount of money a company has; it is a specific accounting figure representing the par value of its outstanding shares. The nominal value, or par value, of a share is the arbitrary value assigned to it at the time of issuance. While the nominal value is a legal requirement, it often has little relation to the actual market value of the share. The difference between the issue price and the nominal value of a share, if any, is typically recorded as share premium or additional paid-in capital.