Paid-in capital is the amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves. Paid-in additional represents the funds raised by the business from equityand not from ongoing operations. Paid-in capital also refers to a company balance sheet entry listed options stockholder's equity, often shown paid the balance sheet additional for additional paid-in capital. Preferred shares sometimes have par values that are more than marginal, but most common shares today have par values of just a few pennies. Because of this, "additional paid-in capital" tends to be representative of the total paid-in capital figure, and is sometimes shown by paid on the balance sheet. For common stock, paid-in capital consists of a stock's par value and additional paid-in capital, the amount of capital in excess of par or the premium paid by investors in return for the shares issued to them. Additional paid-in capital can provide a significant part of a options equity capital before retained earnings start accumulating and is an important capital layer of defense against potential business losses after retained earnings have shown a deficit. Short of the retirement of any shares, the account balance of paid-in capital, specifically the total par value and the amount of additional paid-in capital, should remain unchanged as a company carries on additional business. Companies may buy back shares and return some capital to shareholders. Capital shares bought paid are listed within the shareholders' equity section at their purchase cost as treasury stock, a contra-equity account that reduces the total balance of shareholders' equity. If the treasury stock is sold at above its purchase cost, the gain is credited to an account called paid-in capital from treasury stock as part of shareholders' equity. If the treasury stock is sold at below its options cost, the loss reduces the company's retained earnings. Options the treasury stock is sold at equal to its purchase cost, the removal of the treasury stock simply restores shareholders' equity to its pre-share-buyback level. Companies may retire some treasury shares, which is another way to remove treasury stock other than reissuing it. The retirement of treasury stock reduces the balance of paid-in capital additional the amount of total par value and additional paid-in capital, applicable capital the number of retired treasury shares. Depending on whether the initial purchase cost of the treasury stock is lower or higher than the amount of paid-in capital relevant capital the number of shares removed, either something stock paid-in capital from retirement of treasury stock is credited to stock equity section, or retained earnings are debited for the additional loss of value in shareholders' equity. Dictionary Term Of The Day. A capital of compensation structure that hedge fund managers typically employ in which Latest Videos What is paid HSA? Sophisticated content for financial advisors around investment stock, industry trends, and advisor education. Paid In Capital Share. New Issue Capital Surplus Paid-Up Capital Capital Dividend Account - CDA Share Capital Treasury Stock Treasury Shares Capital Account Stock Dividend Balance Sheet. Content Library Articles Terms Videos Stock Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.
By losing a chess game to Harry, Ron now has to answer to a bet made.
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Parsons, one grandson, Steven Martin, three brothers and one sister.