Finance raised by selling shares in the business – to family and friends in the case of private limited companies, or members of the general public in the case of public limited companies. Companies are permitted to issue shares up to authorised capital, which reflects the real value of assets owned by the company. Share capital shown is only that issued, and is calculated by multiplying the number of shares issued by the nominal value of the shares. There are two main types of share capital: Ordinary and preference.