In most states, legal capital is measured not only by the par value and paid-in capital in excess of par, but also by any accumulated retained earnings.

Name: In most states, legal capital is measured not only by the par value and paid-in capital in excess of par, but also by any accumulated retained earnings.
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Legal capital is typically measured by the par value of the stock plus any paid-in capital in excess of par. Accumulated retained earnings are not considered part of legal capital.

In Most States, Legal Capital Is Measured Not Only by the Par