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CA Yugesh

Chartered Accountant... • 3m

🚀 Picture this: You're about to launch your dream business. You've got passion, a killer idea, and a vision that keeps you up at night. But there's this mysterious world of financial terms that feels like a complex puzzle. Today, we're unraveling one of those puzzles: Share Capital. 1️⃣ Authorized Capital What It Is: Picture the blueprint for your future mansion. Your authorized capital is like that big number on paper—it’s the maximum amount of shares your company could offer if it wanted to. Why It Matters: It sets the stage for growth. You’re not forced to build all those rooms at once, but it’s good to know you have space to expand when the time is right. 2️⃣ Issued Capital What It Is: Now, let’s say you decide to start building just a few rooms instead of the whole mansion. Issued capital is the portion of that grand blueprint you actually put into action by offering shares to investors. Why It Matters: It shows how much of your “house” is currently open to residents (a.k.a shareholders). Investors love clarity about how big—or small—the piece of the pie is. 3️⃣ Paid-Up Capital What It Is: Here’s where the rubber meets the road. Paid-up capital is the actual cash investors have handed over to you for their piece of your dream house. Why It Matters: This isn’t just a promise—it’s real money in your company’s bank account. This capital fuels your operations, helps you build that next product feature, or hire that key team member. This is Day 1 of our 100-day journey into demystifying finance for entrepreneurs. Are you ready to turn financial complexity into your competitive advantage? 💡 Your turn! What financial term has always puzzled you? Drop a comment below, and let's learn together! #EntrepreneurialFinance #StartupLearnings #FinancialFundamentals

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