Additional Paid-In Capital (APIC)
Additional paid-in capital is contributed equity recorded above par or stated capital, adjusted for specified equity transactions and issuance costs.
Paid-in capital, additional paid-in capital, and share premium separate total owner contributions from nominal capital and excess issue proceeds.
Paid-in capital and share premium explain how equity contributions are divided between nominal or stated capital and amounts contributed above that base. The labels depend on the reporting framework and jurisdiction, so a U.S. APIC account should not be treated as legally identical to a UK share premium account.
| Term | Primary meaning | Common context |
|---|---|---|
| Paid-In Capital | Broad contributed-equity amount from owner transactions | U.S. financial-statement analysis |
| Additional Paid-In Capital | Equity contribution above par or stated capital, plus specified framework adjustments | U.S. equity accounts |
| Share Premium | Aggregate issue consideration above nominal value | Company-law and IFRS-oriented terminology |
For shares issued above par or nominal value, gross proceeds are divided between the share-capital account and APIC or share premium. Incremental equity-issuance costs generally reduce equity under the applicable accounting framework, so net contributed capital can be below gross proceeds.
These balances are historical transaction accounts. They do not measure market capitalization, current cash, retained earnings, profitability, or investor confidence. Reconcile each class, issue, currency, noncash contribution, cost allocation, treasury-stock transaction, and capital reduction separately.
This section is educational and does not provide legal, securities, tax, accounting, transaction, financing, or investment advice.
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Additional paid-in capital is contributed equity recorded above par or stated capital, adjusted for specified equity transactions and issuance costs.
Paid-in capital is contributed equity recognized from transactions with owners, separate from retained earnings and market value.
Share premium is the aggregate consideration for issued shares above nominal value, recorded separately under applicable company law and accounting rules.