In most states, legal capital is measured either by the par value of common stock; other states, however, define legal capital to include not only the par value of the stock, but also any paid-in capital in excess of par.

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This statement is true. Legal capital is measured by par value of common stock in most states, but some states also include paid-in capital in excess of par in their definition of legal capital.

In Most States, Legal Capital Is Measured Either by the Par