Share Capital - GCSE Business Definition

What is share capital?

In GCSE Business, share capital is defined as money raised by a company from the sale of shares. It represents the money invested in a company by its owners, called shareholders.

Only private limited companies and public limited companies can raise share capital. Private limited companies sell shares to friends, family or specialist investors, such as business angels. Public limited companies raise large amounts of share capital by selling shares publicly on the stock exchange.