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Is the amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves. Paid-in capital represents the funds raised by the business from equity, and not from ongoing operations.
Paid in capital is the part of the capital that is actually paid by the shareholders to the company on common stocks or preferred stocks. When the stock is issued, not the full amount is directly paid. the part actually paid is moved to the paid in capital
