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.
Read more about this topic: Paid In Capital
Famous quotes containing the words additional and/or capital:
“Don’t you think I’ve had enough excitement for one evening, without the additional thrill of a strange man making love to me?”
—John L. Balderston (1899–1954)
“Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed.”
—Mohandas K. Gandhi (1869–1948)