paid-in capital investment & finance definition
Equity
listed on a company’s balance sheet that is above the amount of equity that is
listed at par value, which is usually $1. Paid-in capital is calculated by
subtracting the par value of equity from the amount of money that actually was
raised by a stock issue. Also called additional
paid-in capital, capital surplus, or capital
in excess of par value.
See paid-in capital in Wall Street Words
Funds and property contributed to a firm by its stockholders. Paid-in capital is generated when a firm issues stock in the primary market, not when the stock is traded in the secondary market. See also
additional paid-in capital,
contributed capital.
Learn more about paid-in capital