Legal capital equals the par value of common stock minus the paid-in-excess of par on the common shares.

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Legal capital equals the total par value of all types of stock (common and preferred) issued by a company, regardless of whether or not it is listed on the balance sheet. Legal capital is the amount of capital that cannot be returned to shareholders as dividends, write-offs, or in any other form. Paid-in-excess of par is not included in legal capital.

Legal Capital Equals the Par Value of Common Stock Minus