Paid-Up Capital

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DEFINITION of 'Paid-Up Capital'

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.

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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.

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RELATED FAQS
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    One of the chief benefits of funding business operations with paid-up capital is that it does not need to be repaid. Also ... Read Full Answer >>
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    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
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