An acronym for paid-in capital; the total amount of cash or other assets that shareholders have paid a bank in exchange for shares of its stock. It is the full amount that a bank receives or has received by selling its shares of stock in the primary market. This includes the amounts paid for equity through initial public offerings (IPOs), direct public offerings, and public listings.
Paid-in capital consists of par value and the excess of par (premium amount) that was paid in. Additional paid-in capital refers to only the amount paid in excess of a stock’s par value. This part of the paid-in capital is usually perceived as the “extra” amount (subscription profit) that an entity receives when it floats its stock in the open market (i.e., for the public) for the first time.
