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What is the term paid-in capital used for?

what is paid in capital The term paid-in capital means all the money investors put in to get stock. It consists of the stock’s par value as well as the extra amount paid by investors. This kind of capital describes the funds gathered by issuing shares, apart from any profits. This figure is shown as shareholders’ equity and shows the sources of a company’s financing. This demonstrates investors’ faith and plays a key role in future development.