Definition of Paid-up capital:
The paid-up capital is the amount that the company receives from its shareholders in exchange for shares. Outstanding payments occur when a company sells its shares directly to investors in the primary market, usually through an IPO. The buying and selling of shares between investors in the secondary market does not result in additional paid-up capital, as the proceeds of the transaction go to the selling shareholders and not to the issuing company.
The paid-up capital, also called paid-up capital or paid-up capital, comes from two sources of financing: nominal value of shares and excess capital. Each part is issued based on the price of a pair. As a general rule, this is quite low and is usually less than $ 1. Any amount paid by the investors will be considered as paid up capital or paid up capital more than the face value. In the balance sheet, the fee value of the issued shares is presented as ordinary or preferred shares in the area of the shares.
This amount is in accordance with the share capital held by the shareholders.
How to use Paid-up capital in a sentence?
- Shareholders' equity is financed by paid-up capital.
- The underlying market is the only place where paid-up capital usually enters through an IPO.
- Capital as capital is the amount that a company receives when it sells shares directly to investors.
- The paid-up capital is financed in two ways: the nominal value of the shares and the excess capital.
- Capital paid is the amount paid by investors in excess of the equivalent value of the shares.
Meaning of Paid-up capital & Paid-up capital Definition