Paid-in surplus definition
/What is a Paid-In Surplus?
A paid-in surplus is the incremental amount paid by an investor for a company's shares that exceeds the par value of the shares. If there is no par value, then the entire amount paid is classified as paid-in surplus. This amount is recorded in a separate equity account , which appears in the balance sheet of the issuer . The concept only applies to shares bought directly from the issuer, and not to shares traded between investors.
Terms Similar to Paid-In Surplus
The paid-in surplus is also known as additional paid-in capital .
