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What is a Capital Account?

The Capital Account in a company is where paid-in capital, retained earnings, and treasury stock is accounted for. In macroeconomics, the Capital Account shows the national net change in ownership of assets.

In accounting and bookkeeping, the Capital Account tracks the amount of Capital on hand at a company, which is the sum of the paid-in capital, the retained earnings, and the value of the treasury stock. Paid-in capital is the money collected from investors during an IPO or other stock issue.

Retained earnings are earnings that were not paid out as dividends. Treasury stock is the value of company stock which was repurchased and never retired.

Keywords: macroeconomics, retained earnings, paid-in capital, treasury stock,