How must subscribers pay for shares in a public company?

In the context of public companies, the payment for shares is primarily required to be made in cash. This ensures that the company receives tangible financial resources that can be utilized for its operational needs and growth. Cash payment maintains clarity in financial transactions and aligns with strict regulatory standards imposed on public companies, which seek to protect shareholders and maintain transparency in financial dealings.

Other forms of compensation, such as work, services, or barter arrangements, are not permissible as methods for paying for shares in a public company. This is primarily because such alternative methods could complicate the valuation of the shares and may not provide the company with immediate liquidity. Deferred payments are also not standard practice for public companies as they could introduce additional risks and uncertainties regarding the company’s capital structure and set expectations for equity holders. Therefore, cash payment establishes a straightforward and reliable method of capital infusion into the company.