capital surplus

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Capital surplus

Amounts of directly contributed equity capital in excess of the par value.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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

capital surplus

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Importantly, emerging market economies with capital surpluses will increase domestic investment and consumption, thereby rebalancing trade and investment flows with developed market economies.
In the short run, though, the world is engaged in a gigantic game of passing the parcel, with no country wanting to take the habitual exporters' goods and their capital surpluses. This is what makes today's beggar-thy-neighbor policies so destructive: though some countries will eventually have to absorb the surpluses and capital, each country is trying to avoid them.
Insurance Group Directive (IGD) capital surpluses have not moved significantly since end-H109, and although credit spreads have narrowed significantly, Fitch notes that insurers have not started to make releases from the significant provisions they made in 2008 for credit defaults.
Insurers were also under pressure amid concerns about the impact of a falling stock market on the capital surpluses held by firms in the sector.