Companies increase authorized share capital to legally allow themselves to issue more shares. This helps them raise large amounts of money from investors without repeated approvals. The extra money, often coming as share premium, is then used to fund business expansion.
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Manish Choudhary (Mani) is a mechanical engineer-turned-financial blogger who founded GetMoneyRich.com to help individuals on their journey to financial independence. With over 16+ years as a Project Manager, he brings a disciplined and analytical approach to finance and investing.
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