Paid-Up Capital

Loading the player...

What is 'Paid-Up Capital'

Paid-up capital is the amount of a company's capital that has been funded by shareholders. Paid-up capital can be less than a company's total capital because a company may not issue all of the shares that it has been authorized to sell. Paid-up capital can also reflect how a company depends on equity financing.

BREAKING DOWN 'Paid-Up Capital'

Paid-up capital is money that a company has received from the sale of its shares, and represents money that is not borrowed. A company that is fully paid-up has sold all available shares, and thus cannot increase its capital unless it borrows money through debt or is authorized to sell more shares.

RELATED TERMS
  1. Paid-Up Additional Insurance

    Additional whole life insurance that a policyholder purchases ...
  2. Paid-Up

    The state of a settlement when all payment obligations for a ...
  3. Capitalization Of Profits

    Converting a company's retained earnings, which represent the ...
  4. Capital Tax

    A tax on a corporation's taxable capital, comprising capital ...
  5. Authorized Share Capital

    The number of stock units that a publicly traded company can ...
  6. Share Capital

    Funds raised by issuing shares in return for cash or other considerations. ...
Related Articles
  1. Professionals

    Dividend and Non-Forfeiture Options

    Dividend and Non-Forfeiture Options
  2. Fundamental Analysis

    Paid-Up Capital

    Paid-Up Capital is listed in the equity section of the balance sheet. It represents the amount of money shareholders have paid into the company by purchasing shares. It’s essentially two accounts, ...
  3. Economics

    Explaining Cost Of Capital

    Cost of capital is the cost of funds used to finance a business.
  4. Economics

    Understanding Capital

    Capital has a variety of meanings, but it generally refers to financial resources.
  5. Investing

    What's Share Capital?

    Share capital, also called equity financing, is the total amount of money and property a company has received for selling its shares to shareholders.
  6. Investing Basics

    What is Capital Stock?

    Capital stock refers to the number of authorized shares a corporation may issue, both common and preferred.
  7. Economics

    Understanding Capital Investment

    Capital investment is a term that describes a company’s expenditures for long-term assets used in the operation of its business.
  8. Professionals

    Shareholders' (Stockholders') Equity Basics

    CFA Level 1 - Shareholders' (Stockholders') Equity Basics. This section covers the various types of equity. Learn the priority order of equity, in case of a firm's liquidation.
  9. Professionals

    Introduction To Capital Investment Decisions

    Capital investments are funds invested in a firm or enterprise for the purposes of furthering its business objectives
  10. Professionals

    Introduction To Cost Of Capital

    Cost of capital is very important for business budgeting and planning.
RELATED FAQS
  1. What is the difference between paid-up capital and share capital?

    Learn to differentiate between authorized share capital and paid-up capital. See why paid-up capital can never exceed authorized ... Read Answer >>
  2. How does monetary policy influence the Fisher effect?

    Find out if paid-up capital generated by the sale of stock has to be repaid by the issuing company and how these funds are ... Read Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    Find out about the difference between called-up and paid-up share capital, including an explanation of the four categories ... Read Answer >>
  4. What is the difference between issued share capital and subscribed share capital?

    Find out about the difference between subscribed share capital and issued share capital, including an explanation of the ... Read Answer >>
  5. What types of capital are not considered share capital?

    Find out what types of capital are not considered share capital, including an explanation of the different types of share ... Read Answer >>
  6. What role do shareholders play in a capital budget?

    Learn about why shareholders play an integral role in capital budgeting and how it benefits businesses to use equity capital ... Read Answer >>
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  3. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  4. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  5. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  6. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
Trading Center