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⍰ ASK What is the significance of the Statement of Capital in a company's financial statements?

The Statement of Capital in a companys money report is a key document that holds important info about the company's share money and who owns what. This statement gives a quick and clear summary of how much money shareholders put in, giving a peek into how the company's money and ownership are set up.

In the Statement of Capital, the Share Capital part shows the value of the shares when they were first issued. This gives a basic idea of how much money shareholders originally gave to the company.

Theirs also the Share Premium part, which tracks any extra money the company makes by selling shares for more than their original value. This shows that investors are willing to pay more, which is a sign they believe in the company's future.
 

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