Archive | Capitalisation

Over and Under Capitalization of Company

After reading this article you will learn about over and under capitalisation of a company. Over-Capitalization of a Company: An over capitalized firm can be compared to a (fat) man who has got fat more than required and suffers from variety of diseases. Over-capitalization implies that the total capital of the company (owned capital plus borrowed capital) is in excess [...]

By |2017-02-06T21:13:23+05:30February 6, 2017|Capitalisation|Comments Off on Over and Under Capitalization of Company
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Over-Capitalisation and Under-Capitalisation: Comparison

This article will help you to make comparison between over-capitalisation and under-capitalisation. Comparison # Over-Capitalisation: This state of affairs for a concern occurs where the amount of the shares issued is much in excess of actual requirement, and thus the rate of profit, i.e., the dividend rate will be too low to allow the shares to sell at par value. [...]

By |2016-11-02T06:00:08+05:30November 2, 2016|Capitalisation|Comments Off on Over-Capitalisation and Under-Capitalisation: Comparison
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