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Describe three disadvantages to being overweight according to research.
Minimum Legal Capital
The least amount of capital that must be raised through the issue of shares for a corporation to be legally established.
Par Value
The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.
Premium Capital
Capital that is obtained or raised at a value above its nominal or face value, often reflecting the additional amount paid by investors over the par value of securities or shares.
Stated Value
The nominal value assigned to no-par stock by the issuing company's board of directors.
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