What is Equity Share capital

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The capital a company raised by offering shares is known as equity share capital or share capital. It is the money that company owners and investors direct towards a company’s capital and use to develop or expand the operations of their venture.

Every company requires substantial working capital to keep their business smooth and running. Such capital proves effective at times when the company is faced with financial restrictions to keep its regular operations active. More than often, companies use their equity shares to raise the required capital known as equity share capital.

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