paid-in capital

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Paid-in capital

Capital received from investors in exchange for stock, but not stock from capital generated from earnings or donated. This account includes capital stock and contributions of stockholders credited to accounts other than capital stock. It would also include surplus resulting from recapitalization.

paid-in capital

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.

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