§ 5601 Association Capital Requirements

• •Before a company can start doing business, it must have a certain amount of money (capital) ready to use.
• •This money comes from selling shares of the company (stock) and any extra money paid by the shareholders.
• •The government decides the minimum amount of money the company must have to start.

A group of friends wants to start a new toy company.

Before they can officially start their company, they need to have a certain amount of money ready. This money comes from selling parts of the company (shares) to investors and any extra money those investors pay. The government sets the minimum amount they need to have.