Paid-in capital refers to the total amount of money that shareholders have invested in a corporation through the purchase of stock, over and above the par value of the stock. This term reflects the additional contributions made by investors to a company, and it's crucial in understanding how a corporation is financed and how its capital structure is formed. It can come from common and preferred stock issuances, as well as additional paid-in capital, which is any amount received from shareholders that exceeds the stock's par value.
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