Paid-in capital, also known as contributed capital, refers to the total amount of money that a company's shareholders have invested in the company through the purchase of its stock. This figure represents funds that are raised through the issuance of stock to investors and is an essential component of a company's equity structure, impacting how a business secures financing and manages its equity. Paid-in capital reflects the initial contributions of shareholders and can increase with subsequent stock issuances or capital raises, providing insight into a company's financial health and stability.