InvestorQ : What is the difference between partly paid and fully paid shares?
Ankit Patil made post

What is the difference between partly paid and fully paid shares?

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Kunal Verma answered.
3 months ago
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Share is a legal right/ownership in the stake of a company, that a person could hold in a company. With these rights, a shareholder is entitled to vote at a company’s meeting, or receive dividends. A person can hold one or more shares, which represent a person’s percentage of ownership of the company. There is no fixed number of shares that can be issued by the company. So, when a company issues shares for subscription, it can be either fully paid shares or partly paid shares.

Fully Paid shares: These are the shares under which the purchaser has paid a full price for the share. For example, the issue price of a share is Rs 100 each, and the subscriber buys it for Rs 100 each itself. This means the shareholders have no further obligation to meet.

Partly-paid shares: These are the shares under which the purchaser has received only paid part of the total issue price of the share. For example, the issue price of the share is Rs 100 each and the purchaser has paid only Rs 60 (this means 60% of the share price).

This simply means that the purchaser should pay a further 40% to the company to attain full rights over the share. Also, the company can, whenever it chooses to, request the shareholder to pay the balance on each share. So, the purchaser can obtain the complete right by making the balance payment to the company in respect of shares.
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