capital surplus

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Capital surplus

Amounts of directly contributed equity capital in excess of the par value.

Capital Surplus

Capital a company raises in a financing round in excess of the capital's par value. For example, capital surplus may occur when a publicly-traded company makes a new issue of stock with a par value of $5 per share and places it with investors for $8 per share. Companies can only raise capital surplus on the primary market because they do not receive any additional money from trades on the secondary market. It is important to note that it has become rare for stock to have a par value. See also: Paid-in capital.

capital surplus

References in periodicals archive ?
A portion of the dividends will be payable out of capital surplus, on September 22, 2015, to shareholders of record on September 8, 2015.
54 per share, a portion of which will be payable out of capital surplus, on September 22, 2015, to shareholders of record on September 8, 2015.
97 bln and sustain a satisfactory level of liquidity, already seen after the ECB's stress tests last October when it reported a capital surplus of e1/4331 mln.
distributed from legal reserve and capital surplus to shareholders (NT$
The continuation of the quarterly cash dividend is subject to certain factors, including, among others, the ability to obtain excess capital from Stewart s regulated insurance subsidiary, the performance of the Company s business, the Company s ratings and the capital surplus position of the Company.
The surplus of capital among insurers and reinsurers continued to fuel overall softening in the property insurance market through the third quarter of 2013," Marsh says in "Benchmarking Trends: Capital Surplus Affecting Property Insurance Pricing.
The group's regulatory capital surplus increased significantly during the quarter to a solvency ratio of over 200%, principally as a result of the additional equity capital raised via the placing in May.
The firms yesterday said the move, which is subject to regulatory approval, would combine two profitable businesses with a substantial retained income base and a strong balance sheet of pounds 16m and a projected capital surplus of around 400%.
Although the company's 2011 after-tax net income was lower than expected, the company increased capital surplus portion in the 2011 dividend payout in order to sustain the high pay ratio.
Three Cypriot banks completed with a capital surplus the European Central Bank`s comprehensive assessment, whereas one bank completed the exercise with a manageable shortfall.
In addition, the experts referred to a capital surplus within the group.
Prudential said its capital surplus had increased further to pounds 2.