Capital Surplus

AAA

DEFINITION of 'Capital Surplus'

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.

INVESTOPEDIA EXPLAINS '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. Capital

    1) Financial assets or the financial value of assets, such as ...
  2. Equity

    1. A stock or any other security representing an ownership interest. ...
  3. Retained Earnings

    The percentage of net earnings not paid out as dividends, but ...
  4. Best's Capital Adequacy Relativity ...

    A rating of an insurance company’s balance sheet strength. Best’s ...
  5. Insurance Regulatory Information ...

    A collection of databases and tools used to analyze the financial ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Retirement

    Projected Returns: Honing The Craft

  2. Mutual Funds & ETFs

    Cutting Edge Options Trades: The Zero-Premium ...

  3. Fundamental Analysis

    The Capital Asset Pricing Model: An ...

  4. Fundamental Analysis

    The Equity-Risk Premium: More Risk For ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center