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Nominal Share Capital is
that part of authorised capital which is issued by the company
the amount of capital which is actually applied by the prospective shareholders
the amount of capital which is actually paid by the shareholders
the maximum amount of share capital which a company is authorised to issue
Nominal capital, also known as authorized capital, represents the securities that are designated for shareholders. Companies that release nominal capital to shareholders do so in order to generate income through traded shares. Ideally, the traded shares increase in value, thus increasing the overall capital for the company. Of course, the shares can also decrease in value, and as a result, nominal capital is clearly designated to protect the company's other assets.
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