paid-in capital


Also found in: Acronyms.

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

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.

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.