What is paid capital?

paid capital is the amount of money that is obtained or paid as a result of the capital offer. It represents a nominal value - the value of the shares at the time of the release - shares. Any amount that is paid by the buyer of a new edition that is above and above a number of value is referred to as additional paid capital. Payed capital can also be referred to as the above -mentioned capital. IT and other repaid capital together are sometimes referred to as capital.

Since investors often pay for nominal value when it is first issued, this additional capital is often a better measurement of the amount of money raised, especially when it comes to ordinary shares. This is because ordinary shares usually have a nominal nominal value, often $ 1 dollar (USD) per share or less. Stocks of preferred shares often have a nominal value closer to the actual value of the shares, so the repaid capital of the preferred problem with the shares would more closely reflect the amount that is actually raised. In both casesECH represents a combination of both types of capital the total amount of capital offered by shares.

Recapitalization or restructuring the debt debt ratio to its own capital can affect the amount of money. If the Company issues shares in order to repay the debt, the paid capital will increase. Companies sometimes buy supplies back to reduce their money, especially if they expect the enemy takeover and want to look less attractive. This type of transaction does not affect capital because it does not change the amount of money that has been generated from a new problem with shares.

Note that this picture is the result of the original stock problems. This measure does not reflect the increase or decrease in the value of the stock, as traded, is not reflected. If the stock price is rising, the increased value is the investor's earnings, while the reduction of the share price is a loss to the investor. Of course,If the company's shares increase value, it improves the company's ability to issue additional shares and increase more capital. Payed capital can only increase if the company issues new shares of shares.