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What is Paid-Up Capital?

Paid-up capital is the money (‘capital’) collected by a company from issuing shares of their stock. In other words, its money raised from issuing and selling stock.

Paid-in capital is not money borrowed, but rather money invested in the company by shareholders. A company will generally issue shares of stock with a par value and an offer price, and paid-up capital represents the difference between total dollars invested and par value of the shares.

Shares that are bought and sold on the secondary market do not increase paid-up value, as those transactions occur between shareholders and do not flow back to the company in the form of new capital.

Keywords: stocks, Initial Public Offering (IPO), paid-in capital, corporate finance, capital markets,