Capital Surplus

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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.

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RELATED FAQS
  1. What business risks ultimately caused Enron's collapse?

    The Internal Revenue Service (IRS) requires that a company lists its share premium – otherwise known as the capital surplus ... Read Full Answer >>
  2. What sectors are best for an investor seeking a high annual return?

    A company receives a share premium whenever it receives money in excess of the face value (par value) of its shares. Corporations ... Read Full Answer >>
  3. How does goodwill increase a company's value?

    Business goodwill is an intangible asset owned by and associated with the operation of the company. The goodwill of a company ... Read Full Answer >>
  4. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  5. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  6. Why can additional paid in capital never have a negative balance?

    The additional paid-in capital figure on a company's balance sheet can never be negative because companies do not pay investors ... Read Full Answer >>
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