What is 'Capital Surplus'

Capital surplus is equity which cannot otherwise be classified as capital stock or retained earnings. It's usually created from a stock issued at a premium over par value.

BREAKING DOWN 'Capital Surplus'

Capital surplus is also known as share premium (UK), acquired surplus, donated surplus, paid-in surplus, or additional paid-in capital.

RELATED TERMS
  1. Surplus

    The amount of an asset or resource that exceeds the portion that ...
  2. Budget Surplus

    A situation in which income exceeds expenditures. The term "budget ...
  3. Benchmark Surplus

    Benchmark surplus is an insurance term that refers to the amount ...
  4. Contributed Surplus

    The amount of money that a company earns from sources other than ...
  5. Paid In Capital

    The amount of capital "paid in" by investors during common or ...
  6. Adjusted Surplus

    The surplus (assets minus liabilities) of an insurance company ...
Related Articles
  1. Personal Finance

    Explaining Budget Surplus

    Budget surplus is an economic term describing a situation where revenue exceeds expenditures.
  2. Small Business

    Additional Paid-In Capital

    Additional paid-in capital is an account in the equity section of a balance sheet. It represents the additional amount paid for the company’s shares over the par value of the shares. Additional ...
  3. Investing

    Japan’s Trade Account Surplus Narrowed in May

    Japan has been posting large account surplus for the past few months amid good yield on foreign investments and a weaker yen.
  4. Investing

    Understanding Consumer Surplus

    Consumer surplus is an economic measure of consumer satisfaction, which is calculated by analyzing the difference between what consumers are willing to pay for a good or service, relative to ...
  5. Investing

    Japan’s Trade Account Shows Biggest Surplus Since 2007

    Japan’s trade balance expanded by 6.9% and showed an unadjusted surplus of Y2.98 trillion in March, edging up from Y2.43 trillion in February.
  6. Investing

    Germany Achieves Another Record Trade Surplus

    Germany has posted yet another record trade surplus while the rest of the eurozone struggles from weak demand and deflationary pressures.
  7. Investing

    Japan’s Current Account Surplus Jumped in February

    Japan logged its largest current account surplus since March 2014 in February, assisted by higher income from overseas investments and healthy spending by foreign tourists.
  8. Managing Wealth

    3 Reasons To Buy Government Surplus for Your Small Business

    Learn why it's wise to access government surplus auctions to buy furnishings, equipment and other items to start a new business or expand an existing business.
  9. Insights

    What's a Producer Surplus?

    In economics, producer surplus is the difference between the price at which the producer actually sells a product and the minimum price the producer would have accepted for the product. The surplus ...
  10. Managing Wealth

    Learn The Lingo Of Private Equity Investing

    Once, only sophisticated investors worried about the private equity industry. But now, mainstream investors are developing an interest as well.
RELATED FAQS
  1. What business risks ultimately caused Enron's collapse?

    Find out how a share premium account is taxed according to U.S. GAAP, which often refers to this account as additional paid-in ... Read Answer >>
  2. What is the difference between consumer surplus and economic surplus?

    Learn the difference between consumer surplus and economic surplus, how the concepts are related and the important theoretical ... Read Answer >>
  3. For what purpose is the consumer surplus figure used?

    Understand who uses the consumer surplus figure and why it's used. Learn why companies want to minimize consumer surplus ... Read Answer >>
  4. How does additional paid in capital affect retained earnings?

    Find out how additional paid-in capital can impact a company's retained earnings, including an explanation of both financial ... Read Answer >>
  5. Why can additional paid in capital never have a negative balance?

    Find out why the additional paid-in capital entry on a company's balance sheet can never be negative and how paid-in capital ... Read Answer >>
  6. Does the profit or loss of a company affect its paid in capital?

    Find out why the profits or losses of a business have no effect on its total paid-in capital, including how paid-in capital ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center