legal capital

legal capital definition - business

legal capital

Capital that by law or resolution must remain within a firm and that is restricted for purposes of dividends or other distributions. Legal capital is generally equal to the par or stated value of all outstanding stock. Also called stated capital.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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