section of stockholders' equity that shows: (1) amount of stock a corporation has issued; (2) the premiums or discounts that have resulted from selling stock (paid-in capital in excess of par or stated value); (3) stock received from donations; and (4) the resale of treasury stock. Stockholders' equity consists of paid-in or contributed capital and retained earnings.
- Banking. The capital stock of a bank, Federal Reserve Bank, or international development bank subscribed to, and paid by, its stockholders. Paid-in capital is the amount contributed by stockholders to obtain a bank charter and commence business. Federal Reserve member banks are required to purchase shares in their district Federal Reserve Bank equal to 6% of their capital and surplus; only 50% of this amount actually is paid. The remainder, or callable capital, can be called at any time.
- Finance. The difference between par value of a corporation's outstanding shares of stock and current market value. This value is adjusted downward when a corporation repurchases its own stock. Contributions in excess of par value or donations not counted toward capital stock are called capital surplus.
capital received from investors in exchange for stock, as distinguished from capital generated from earnings or donated. The paid-in capital account includes capital stock and contributions of stockholders credited to accounts other than capital stock, such as an excess over par value.
capital received from investors in exchange for stock, as distinguished from capital generated from earnings or donated. The paid-in capital account includes capital stock and contributions of stockholders credited to accounts other than capital stock, such as an excess over PAR value received from the sale or exchange of capital stock. It would also include surplus resulting from recapitalization. Paid-in capital is sometimes classified more specifically as additional paid-in capital, paid-in surplus, or capital surplus. Such accounts are distinguished from retained earnings or its older variation, earned surplus.
sum received by an insurance company at the sale of its stock. This capital represents the interest of the stockholders in the company.
