Paid-In Capital
/ˌpeɪd ɪn ˈkæpɪtl/
Definitions
- (n.) The amount of capital contributed by shareholders to a corporation in exchange for stock, including par value plus any excess paid over par.
The company's balance sheet showed an increase in paid-in capital after the new stock issuance.
- (n.) A component of shareholders' equity representing funds received from investors, not including retained earnings.
Paid-in capital differs from retained earnings as it reflects actual invested funds.
Forms
- paid-in capital
Related terms
See also
Commentary
Paid-in capital is a critical element of corporate finance and equity accounting, often distinguished from retained earnings and other equity components.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.