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 ?
When shares were issued, the consideration received was stated capital to the extent of par value, and the excess, if any, of the amount received over the par value was capital surplus; or, if the shares were of no par value, the entire consideration was stated capital, except that the directors were empowered to allocate amounts received for no par value shares to capital surplus prior to the time of issuance.
Axa and L&G cautioned in recent results announcements that insurers would have to reduce annuity payments if the strict new capital surplus requirements came into effect.
They believe UK insurers would need pounds 30-70billion extra capital reserves to meet the proposed capital surplus requirements.
9 billion yen to its capital surplus that can be used to cover cumulative losses.
5p) went some way to calming concerns about insurers this week when it revealed its capital surplus stands at pounds 1.
With no foreign debt and a healthy capital surplus, the rate of growth was in excess of 7% in 2006 and you can certainly see it taking place in front of your eyes.
However, the Department of Finance sanctioned approval for the HSE to move EUR71million from its capital surplus to revenue - day to day spending - in 2006 in order to address core service delivery issues such as the cost of additional beds in the community to support hospital services.
While Fannie Mae's capital classification as of March 31, 2005, is adequately capitalized, Fannie remains required to achieve a 30 percent capital surplus over the minimum capital requirement by Sept.
25 trillion yen as capital surplus has another aim of avoiding possible nationalization or official intervention in its decision-making in the event it cannot pay dividends on its preferred shares sold to the government in fiscal 1998 and 1999.
Total assets, premiums earned, and capital surplus are shown in billions of dollars, instead of millions of dollars as indicated in the legend, and net income is shown in millions of dollars, not thousands of dollars as indicated in the legend.
The committee has requested the Board's view on the possibility of transferring some of the capital surplus of the Federal Reserve Banks to the Treasury in order to cover the budgetary costs of paying interest on required reserve balances.