additional paid-in capital

additional paid-in capital definition - business

additional paid-in capital

Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements will show $1 in common stock and $9 in additional paid-in capital for each share issued. Also called capital contributed in excess of par value, capital surplus, paid-in surplus.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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