What does the term 'share capital' refer to?

Share capital refers to the total amount raised by a company through the issuance of shares to investors. This can include both common shares and preferred shares, which represent the ownership equity in the company. By issuing shares, a company generates funds that can be used for various purposes, such as expanding operations, investing in new projects, or paying down debt.

The concept of share capital is fundamental to understanding the financial structure of a company, as it directly impacts the company's equity and is a critical measure of its financial health. Investors often look at share capital to assess how much funding a company has raised from its owners, which can influence their decision to invest in the company or evaluate its value.

In contrast, the other options relate to different types of financial activities: loans pertain to borrowed money, income generated from assets involves earnings from investments or operations rather than capital raised from shareholders, and retained earnings refer to profits that have been reinvested in the company rather than distributed as dividends. Each of these plays a distinct role in a company's overall financial strategy, but they do not encapsulate the concept of share capital itself.