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.
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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.