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How much do shareholders pay for their shares?

The price payable for the shares is generally dependent on the money the company will need to establish its business (for example, to buy a machine).

After incorporation, the same is true.  The company will need money to expand its business and the board will have to decide if the company should borrow this or ask the shareholders to fund this by paying for new shares for a sum to be agreed.

 

Last updated 22 June 2010
[link to business.govt.nz website].