Additional Paid in Capital

Metadata

  • Id: bs_add_paid_in_cap
  • Type: fundamentals
  • Subtype: balance_sheet
  • Units: currency
  • Decimal Points: 0
  • Currency Convertible: Yes
  • Tags: “additional paid in capital”, “APIC”, “paid in capital in excess of par”, “paid in surplus”, “share premium”, “capital surplus”

Description

Additional paid in capital (APIC) is a component of shareholders’ equity that represents the excess amount of money that investors have paid for a company’s shares over their par value. Par value is the nominal or face value of a share, which is usually a very small amount. For example, if a company issues 100 shares of common stock with a par value of $1 per share and sells them for $10 per share, its APIC is $900 ($10 - $1 x 100). APIC reflects the initial contribution of shareholders to the company’s equity and does not change unless new shares are issued or existing shares are repurchased.