The financial accounting term paid in capital is used to describe the value of the assets invested in the company by stockholders. Paid in capital is found in the owner's equity section of the balance sheet.
Paid in Capital = Par Value of Stock + Additional Paid in Capital
Paid in capital are investments in cash, or other assets in a company, that are exchanged for shares of capital stock. The total value of capital raised is sometimes reported on the balance sheet as both the par value of the stock issued as well as the paid in capital that was in excess of par (additional paid in capital). Since the par value of stock is often very small, these two categories are often combined.
Paid in capital is the value of the assets invested in the company by the stockholders. This is different than the concept of earned capital, or retained earnings, which are not part of paid in capital. Generally, these initial capital investments by stockholders are never withdrawn from the company, and are considered a permanent source of funding.
balance sheet, owner's equity, par value, retained earnings, sources of equity
Explore Investing Further
Trading has never been easier, thanks to the rise of online platforms that enable you to buy and sell various assets at the click of a button. But with so many options available, it can be challenging to decide which platform is right for you.
Looking for a way to avoid swap fees while trading forex?
Below listed are the small reviews of the top 10 ETF brokers available across the United States.
Our top beginner's pick for copy trading is eToro. Read on for more details, plus seven good alternatives.
Swing trading stocks can be a great way for investors to take advantage of short-term stock market movements and gain significant returns. If you're interested in swing trading, the key to success lies in selecting the right stocks to buy and sell quickly for a profit.
The table below lists the best stock picks under $2, listed on public exchanges.
The table below lists the best stock picks under $1, listed both on public and OTC exchanges.
This section will highlight the best EV-trading penny stocks available in the United States.
The demand for sustainable energy has grown rapidly in recent years. This has resulted in increased scrutiny of the automotive market. As a result, the electric vehicle (EV) industry has made significant advancements.
Intelligent Bio Solutions Inc. is a life sciences company, founded in 2016 with headquarters in New York and is engaged in performing diagnostic tests, real-time monitoring, and non-invasive surgery for its patients. The firm has developed a CoV-2 Biosensor, which can be used in RNA virus detection.
Hour Loop was founded in 2013 with headquarters in Redmond, Washington. It’s an online retailer involved in e-commerce in the United States that hit the public markets on Jan 7th of 2022. The company sells home/garden decor, electronic products, kitchenware, and apparel through walmart.com, amazon.com, and hourloop.com.
.jpg)
