Paid-in capital

Paid-in capital is the payments received from investors in exchange for an entity's stock. This amount includes the par value of the shares issued. Any profits or losses generated by the entity are not included. Paid-in capital quantifies the fund raising capabilities of an organization.

Paid-in capital is not the same as additional paid-in capital (APIC). APIC does not include the par value of shares sold.

Related Courses

The Balance Sheet