Paid-In Capital

What Does Paid-In Capital Mean?

Paid-in capital is the amount of cash or assets contributed by the investors to a company or the issuer of the stocks.

It is also known as contributed capital or permanent capital.

Insuranceopedia Explains Paid-In Capital

Paid-in capital is the amount of stocks sold to investors by the issuer but does not include stocks sold in the secondary stock market. Nor does it include income from company operations such as the number of products sold in a particular company branch.

The issuer can buy back the stocks from the investor. They must also notify the state of the stocks sold and issued.