Paid in capital, paid-in capital or added capital is capital that is added to a firm by buyers by purchase of stock from the organization, the principal market, not by purchase of stock on view market from other stockholders (the extra market). It offers talk about capital (capital stock) as well as additional paid-in capital.
The paid-in capital bank account does not indicate the quantity of capital added by any specific entrepreneur. Instead, it shows the aggregate amount of capital added by all shareholders.
However, the word has different meanings in several contexts. For instance, it could make reference to the money a company gets from potential shareholders, as well as the explained (nominal or par) value of the stock, which coincides with this is of additional paid-in capital, or paid-in capital more than par. You need to be familiar with the utilization of the word and the abbreviation, which can mistake.
Check More at http://www.futureapp.biz/