Hello Sir, what is the difference between Paid-in-capital and Paid-up-capital ? Please elaborate.


5 Answer(s)


0

Both Paid in and Paid up capital refer to money from investors that the company receives to issues shares to the investors.
Everytime a new investor invests money in the company the paid up capital increases by that amount.

0

The amount of capital paid in by investors is paid in/paid up capital
It is a measure of how much money investors have pumped into the company since inception in return for equity

0

i looked up the terms in Investopedia, but I still see no difference.
"DEFINITION of 'Paid In Capital'

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves. Paid in capital represents the funds raised by the business from equity, and not from ongoing operations."

Read more: http://www.investopedia.com/terms/p/paidincapital.asp#ixzz3ZtePwiFm
Follow us: @Investopedia on Twitter

"Paid-Up Capital is listed in the equity section of the balance sheet. It represents the amount of money shareholders have paid into the company by purchasing shares. It’s essentially two accounts, the par value of the stock and the excess over par."

Read more: http://www.investopedia.com/video/play/paidup-capital/#ixzz3ZteZhILJ
Follow us: @Investopedia on Twitter

0

I think the difference lies in that paid-up is usd for primary market issuance of shares, while paid-in for other issuances, for example paid-in is the capital injected in a new subsidiary, etc. 


0

The difference between these two terms is that the paid-up capital corresponds to the capital that supposes to be paid and the paid-in capital corresponds to the capital actually paid and for which shares are already issued.

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