Share capital

Share capital is like sharing your toys with other kids. Imagine you have a lot of toys, and you want to let your friend play with some of them too, but you want to make sure they give them back to you in the end. So you give your friend some special toy tokens that represent the toys they can use. These special tokens are like shares of a company.

In the same way, companies need to raise money to do things like building new factories, buying more equipment, or hiring more workers. They can't do all of this just by themselves, so they need to ask other people to help them by investing in their company. This is where share capital comes in.

When a company sells shares, they are giving people toy tokens, just like you do with your toys. This allows people who buy the shares to become co-owners of the company and get a share of the profits. The company can use the money they raise from selling shares to pay for new projects, expand their business, or pay off debts.

So, just like when you share your toys with other kids, companies can share their ownership with other people by selling shares through share capital. It's all about working together to achieve a common goal!