What is Paid in Capital?

Paid in Capital represents funds raised by the business from equity (investors & owners), and not from revenue or ongoing operations. It is listed in the Equity Section of the Balance Sheet.

Audio Definition/Pronunciation

  • Capital

    Capital refers to the total of all financial assets held by a company or individual available for operating a business, and creating investment or growth opportunities. Examples of capital in a business include cash, funds in deposit accounts, facilities owned,…

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