Paid-in capital, orcontributed capital, is the full amount of cash or other assets that shareholders have given a company in exchange for stock. Paid-in capital includes the par value of both common andpreferred stockplus any amount paid in excess. Additional paid-in capital, as the name im...
What is the definition of additional paid-in capital?APIC is any payment received by a firm’s shareholders above thepar valueof thestock. The par value is usually very low, i.e. at $0.01, so that most of the amount paid in by each investor in excess of this value is recorded as ...
Paid-in capital is the money a company receives from selling its stock. If the stock has a par value or stated value, then the additional paid-in capital is the money the company received from the stock sale that was in excess of par value. Assessing Paid-in Capital When companies issue...
What Are the Different Ways to Raise Business Capital? What Is a Capital Dividend? What is a Share Capital? What is Additional Paid in Capital? What are Capital Notes? What is Debt Capital? Discussion Comments WiseGeek, in your inbox
A. The amount that shareholders have paid on the shares issued. B. The amount that the company has required shareholders to pay on the shares issued. C. The amount of capital that the company has issued to its shareholders. D. The amount that the company requires its shareholders to pay ...
the increased value represents earnings to the investor, while a decrease in thestock pricerepresents a loss to the investor. Of course, if a company’s stock increases in value, it improves the company’s ability to issue additional stock and raise more capital. Paid-in capital can only inc...
Additional Paid-in Capital:This is the excess amount paid by an investor over the stock’s par value. For example, if the par value of a company’s common stock is $10 per share and investors paid $50 per share, $40 of each share sold would be in additional paid-in capital. ...
In addition to called-up share capital and paid-up share capital, share capital can fall into two other categories: authorized share capital and issued share capital. Authorized Share Capital To sell stock to the public, a business must first register with a governing bo...
Common stock is one of the most common way of raising external capital. A share of common stock represents a share of a firm's equity value, and also entitles the investor a vote.Answer and Explanation: In accounting Additional Paid-In Capitaldebits paid in capital in excess of...
Paid in capital: Paid-in capital is the sum of the amount received from investors for common or preferred stock. It also includes the additional...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough ...