Fully Paid Shares

Investments

Quick Definition

Fully Paid Shares are shares for which the shareholder has paid the entire issue price, and no further payment is required to the company.

Detailed Explanation

Fully Paid Shares represent complete ownership in a company, where investors have already paid the full value of the shares. Unlike partly paid shares, there are no outstanding dues or future calls from the company.

Shareholders of fully paid shares enjoy full rights, including dividends and voting (for equity shares).

Key Features of Fully Paid Shares

  • No further payment obligation
  • Full ownership rights
  • Eligible for dividends
  • No risk of share forfeiture due to non-payment

Fully Paid vs Partly Paid Shares

  • Fully Paid Shares: Entire amount paid upfront
  • Partly Paid Shares: Balance amount payable later

Why Fully Paid Shares Matter

  • Provides financial certainty to investors
  • Reduces risk of additional liability
  • Important for company capital structure

Example

"If a share has a face value of ₹10 and the investor has paid the full ₹10, it is a fully paid share."

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