capital surplus


Also found in: Dictionary, Legal, Wikipedia.

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 ?
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.
Alliance Bank's capital surplus is estimated at KZT2bn (USD13m/EUR11m) for 2011 under international accounting standards, Kabashev said.
The company reported cash and cash equivalents at USD79,657,798, and maintained a working capital surplus of USD79,522,562 in the third quarter of 2011.
"In the longer-term, GCC is a capital surplus region.
The structure of the financial provisions was grounded in the concepts of "net assets," "stated capital," "capital surplus," and "earned surplus." Dividends could be paid only out of "unrestricted and unreserved" earned surplus, subject to exceptions added in later for natural resource or "wasting asset" businesses and "nimble dividends," and a few exceptions such as elimination of preferred-stock dividend arrearages.
While Abu Dhabi did not escape the impact of the Great Recession, our recovery has taken hold relatively quickly due to our strong capital surplus and strong government policies supporting the domestic economy and financial sector.
Spyker has just bought Saab Great Britain and will use its extra capital surplus to cover this last instalment, Muller said.
Hitachi Annual Report, March 31, 2009 (12) Legal Reserve and Retained Earnings, and Dividends The Japanese Company Law provides that earnings in an amount equal to 10 percent of appropriations of retained earnings to be paid as dividends should be appropriated as a capital surplus or a legal reserve until the total of capital surplus and legal reserve equals 25 percent of stated common stock.
In addition, the experts referred to a capital surplus within the group.
By the end of September RSA's capital surplus stood at pounds 1.7bn.
With global investment flows expected by the UN to slow this year and to recover only slowly next year, Najib said that Malaysia would sign more deals with 'capital surplus' countries.
"We will construct other vehicles for investments with other capital surplus countries," he said.