Fully paid shares

Fully paid shares,

Definition of Fully paid shares:

  1. Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares. When a company issues shares upon incorporation or through an initial or secondary issuance, shareholders are required to pay a set amount for those shares. Once the company has received the full amount from shareholders, the shares become fully paid shares.

  2. Fully paid shares are different from partially paid shares in which only a portion of the market value has been received by the company. In the case of partially paid shares, the shareholder is still required to pay the remaining amount to the company. For example, let's say Company XYZ sells shares for $50 per share. If the company receives $50, the share is a fully paid share, but if less than $50 has been collected, it is a partially funded share.

  3. Shares whose full par value has been received by the issuing firm and therefore no call can be made on their holder(s).

How to use Fully paid shares in a sentence?

  1. Fully paid shares differ from partially paid shares, in which only a portion of the market value has been received by the company.
  2. Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares.

Meaning of Fully paid shares & Fully paid shares Definition