The full amount of an entity’s capital that has been paid (contributed) by its shareholders (equity holders/ owners) in exchanges for its issued stock (in the primary market- i.e., at the stage of initial public offering, IPO). This consists of the monetary amounts and other assets (economic resources) that have been surrendered by the shareholders (owner-investors) against such stockholdings.

This part of an entity’s capital is a key component of its total equity. Paid-in capital (total paid-in capital) is the sum of total capital stock and total additional paid-in capital (total APIC). Total stockholders’ equity results from adding up total paid-in capital and retained earnings and any accumulated other comprehensive income (OCI) less any treasury stock (i.e., repurchases of an entity’s own stock from the market).

The paid-in capital is also known as a paid-up capital, a contributed capital or for short as PIC.