Additional Paid-in Capital
Excess received from shareholders over the par value (or stated value) of the stock issued; also called contributed capital in excess of par.
For example, if 1,000 shares of $10 par value common stock are issued at a price of $12 per share, the additional paid-in capital is $2,000 (1,000 shares x $2). Additional paid-in capital is shown in the Shareholders' Equity section of the balance sheet.
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