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Paid-in capital is one of the major categories of stockholders' equity. Generally, paid-
in capital reports the amount that a corporation received from its stockholders (or
shareholders) in exchange for the newly issued shares of its capital stock.
Paid-in capital is also referred to as contributed capital and as permanent capital.
Generally, retained earnings is the cumulative amount of after-tax net income earned
by the corporation since its inception minus the dividends that have been distributed
to its stockholders since the corporation began.