Share price

The Stock Exchange is a market where shareholders buy and sell shares to and from each other, and the price of the share on the Stock Exchange is determined by the shareholders – not by the company. If more people are wanting to buy shares then there are people wanting to sell shares, then the price of the shares will increase so as to persuade more people to sell.
When the company first issued the shares, then the company will have obviously received cash. However, from then on shareholders can sell their shares to other people and this is what the Stock Exchange exists for – to enable people to buy and sell shares to and from each other.
It is just like any other market.

If you wanted to buy shares in my company on the Stock Exchange, you will be buying them from existing shareholders (not from my company) and the price you will be prepared to pay will depend on how well you think my company will do in the future. If you think my company will do really well (and be paying big dividends) then you will be prepared to pay a high price. If you think my company is going to do badly in the future then you will only be prepared to pay a much lower price.

The share capital on the SOFP is the nominal/par value which is the amount that the company received when the shares were originally issued, which could have been a long time ago. By now the company could have expanded enormously and so other people are prepared to pay a lot more for the shares when they buy them from existing shareholders on the Stock Exchange.

I do explain all of this in my free lectures, and how in theory we can calculate the market value of shares (which is what is important for the exam). If you are not watching the lectures then you really need to buy a Study Text from one of the ACCA approved publishers.