Additional Paid In Capital
What is additional paid-in capital?
Additional paid-in capital, also called contributed capital, is money given to a company by investors in excess of the par value of capital stock.
In practices, this is nearly all of the money raised through the issue of equity as the par value of most stock is only pennies. For instance, if a stock has a par value of 10 cents and investors purchase shares at an Initial Public Offering (IPO) for $15, $14.90 of every $15 is additional paid-in capital.