paid-up capital

Paid In Capital

Capital that a company raises in a financing round. That is, the paid in capital is the money a publicly-traded company receives when it issues new stock, either as an IPO or an additional issue. It is important to note that companies only raise paid in capital on the primary market; they do not receive any additional money from trades on the secondary market. The paid in capital goes toward expanding or improving upon a company's operations. It is also called paid-in surplus or the contributed capital.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

paid-up capital

the amount of CALLED-UP CAPITAL which shareholders have paid to date, where a JOINT-STOCK COMPANY issues shares with phased payment terms. For example, a company may issue £1 shares with 50p payable immediately upon application by intending shareholders, a further 25p upon allotment of shares to shareholders and the final 25p three months later. Here the paid-up capital three months after allotment would be £1 per share times the number of shares allotted, equal to called-up capital, unless there is a shortfall from shareholders who have failed to pay their final 25p instalments (calls in arrears). See SHARE ISSUE.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

paid-up capital

the amount of CALLED-UP CAPITAL that shareholders have paid to date, where a JOINT-STOCK COMPANY issues shares with phased payment terms. Where some shareholders fail to pay an instalment (CALLS IN ARREARS), paid-up capital will be less than called-up capital. See SHARE ISSUE.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005