Ordlista
/

Non-cash issue

Non-cash issue

A non-cash issue is a share issue in which the new shares are paid for with property instead of cash.

What is a non-cash issue?

A non-cash issue is a form of share issue in which the new shares are paid for with property — assets rather than money. This can be machinery, real estate or shares in another company.

 

When is a non-cash issue used?

It is common when a company wants to acquire an asset or another company in exchange for its own shares, for example when building a corporate group. The value of the property must be reviewed by an auditor. Like a new share issue, it increases share capital and is recorded as a share ledger event.

Record share issues
Henrik Kristensen, NVR
Behöver du hjälp att komma igång med aktieboken? Vi hjälper dig!

Related terms

Non-cash consideration

Non-cash consideration is property other than money that is used as payment for shares in a limited company.

Share issue

A share issue is when a limited company issues new securities, usually shares, to raise capital.

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.