Paid-in Capital in Excess of Par Value

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Paid-in Capital in Excess of Par Value represents the additional amount that investors have paid for stock over its stated par value. It is reported as part of paid-in capital on the balance sheet, along with the stock's par value (if applicable) and any additional paid-in capital. It is not the same as legal capital, which is the minimum amount of capital that a company must retain to protect its creditors. Paid-in Capital in Excess of Par Value can have a positive or negative balance depending on the amount investors paid for the stock. The fact that a stock does not have a stated value (no-par stock) does not necessarily mean that the Paid-in Capital in Excess of Par Value will be increased.

Paid-In Capital in Excess of Par Value