To calculate equity share capital, use the formula: Equity Share Capital = Number of Shares Issued x Face Value per Share. This calculation helps determine the total funds raised by a company through equity shares for operational and growth activities.
The value of common stock issued is reported in the stockholder's equity section of a company's balance sheet.
What is a Common Stock? Common stock is a type of security that represents ownership of equity in a company. There are other terms – such as common share, ordinary share, or voting share – that are equivalent to common stock.
Equity issuance costs are the expenses a company incurs during the process of issuing equity securities. These costs may include legal fees, underwriting fees, registration fees, and other expenses related to the issuance process.