Question

_____ refers to that part of the issued capital which has actually been subscribed by the public.

• A. Called up capital
• B. Subscribed capital
• C. Issued capital
• D. Nominal or authorized capital

Answer 1

The correct option is B Subscribed capital

When a company prepares to "go public" by issuing stock for the first time, investors can submit an application expressing their desire to participate. Subscribed share capital refers to the monetary value of all the shares for which investors have expressed an interest. When a company issues a part of its authorized share capital, investors may or may not subscribe for all of its shares. Thus, the part of issued share capital which has been subscribed by investors is known as subscribed share capital