Paid-in capital (also paid-up capital and contributed capital) is capital that is contributed to a corporation by investors by purchase of stock from the corporation, the primary market, not by purchase of stock in the open market from other stockholders (the secondary market). It includes share capital (capital stock) as well as additional paid-in capital.[1]
The paid-in capital account does not reflect the amount of capital contributed by any specific investor. Instead, it shows the aggregate amount of capital contributed by all investors.
However, the term has different definitions in different contexts. For example, it could refer to the money that a company gets from potential investors, in addition to the stated (nominal or par) value of the stock, which coincides with the definition of additional paid-in capital, or paid-in capital in excess of par. One should be aware of the use of the term and the abbreviation, which can confuse.
paid, capital, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, february, 20. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Paid in capital news newspapers books scholar JSTOR February 2024 Learn how and when to remove this message Paid in capital also paid up capital and contributed capital is capital that is contributed to a corporation by investors by purchase of stock from the corporation the primary market not by purchase of stock in the open market from other stockholders the secondary market It includes share capital capital stock as well as additional paid in capital 1 The paid in capital account does not reflect the amount of capital contributed by any specific investor Instead it shows the aggregate amount of capital contributed by all investors However the term has different definitions in different contexts For example it could refer to the money that a company gets from potential investors in addition to the stated nominal or par value of the stock which coincides with the definition of additional paid in capital or paid in capital in excess of par One should be aware of the use of the term and the abbreviation which can confuse See also editBalance sheet Capital surplus Preferred stock Reserve accounting Treasury stockReferences edit Paid in capital Cambridge Dictionary Retrieved 23 February 2024 nbsp This economics related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Paid in capital amp oldid 1221337105, wikipedia, wiki, book, books, library,
