Capital Surplus

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.

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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. 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 >>
  4. Is a company's paid in capital affected by the trading of its shares in the secondary ...

    Find out why the buying and selling of stock on the secondary market has no impact on the amount of paid-in capital generated ... Read Answer >>
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    Understand why an economist would be interested in consumer surplus. Learn why an economy would want to maximize consumer ... Read Answer >>
  6. What is additional paid-in capital and how does it relate to stockholder equity?

    Understand what additional paid-in capital is used to measure, and learn how a company's additional paid-in capital effects ... Read Answer >>
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