Legal Definitions - paid-in capital

Definition: Paid-in capital refers to the money that investors have paid for the capital stock of a corporation.

Examples: If a corporation issues 100 shares of stock at $10 per share, and investors buy all 100 shares, the paid-in capital would be $1,000.

Explanation: Paid-in capital is the amount of money that a corporation receives from investors in exchange for ownership in the company. This money is used to fund the operations of the business and help it grow. In the example given, the investors paid $10 per share, which means that the corporation received $1,000 in total. This money can be used to purchase assets, pay off debts, or invest in new projects.