Paid-Up Capital

Corporate Finance Financial Terms Dictionary

Contents

Paid-in capital is the money a company receives from selling shares directly to investors.

The primary market is the only place where paid-in capital comes in, usually through an initial public offering.
Funding for paid-in capital comes from two sources: par value of shares and excess capital.
Paid-in capital is the amount paid by investors in excess of the par value of shares.
Equity financing is represented by paid-in capital.