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Paid-In and Share Premium Capital

Paid-in capital, additional paid-in capital, and share premium terms.

Paid-In and Share Premium Capital covers debt-equity mix, share capital, leverage, capitalization, reserves, preferred or hybrid capital, recapitalizations, payouts, and capital-maintenance concepts.

Use these pages when a financing choice changes leverage, dilution, legal capital, reserve capacity, creditor protection, shareholder payouts, or debt capacity. It sits inside Paid-In, Called-Up, and Subscribed Capital, so readers can move up when the broader company-finance context matters.

Use the table below to choose the narrower corporate-finance branch before applying a term to a model, board memo, financing analysis, transaction review, or risk assessment. Move into the term page when the evidence source, calculation, agreement, filing, account, or governance right matters.

What This Branch Covers

AreaUse it for
Additional Paid-In Capital (APIC)Additional paid-in capital records amounts shareholders paid above par or stated value when shares were issued.
Paid-In CapitalPaid-in capital is the amount shareholders contributed to a company through share purchases and related equity issuances.
Share PremiumShare premium is the amount received for issued shares above their nominal or par value.

What to Check

  • Debt, equity, preferred, hybrid, reserve, or legal-capital account involved.
  • Leverage ratio, coverage ratio, capitalization measure, covenant, or capital-maintenance rule.
  • Issuer documents, debt agreements, shareholder approvals, financial statements, or board materials.
  • Cash-flow capacity, maturity schedule, priority, dilution, distribution restriction, and tax treatment.
  • Effect on value, solvency, credit risk, control, flexibility, and refinancing risk.

Common Mistakes

  • Confusing book capital, market capitalization, legal capital, and enterprise value.
  • Viewing leverage without cash-flow coverage and maturity timing.
  • Ignoring seniority, covenants, reserve restrictions, and jurisdiction-specific capital rules.
  • Treating recapitalization, dividend policy, buybacks, and capital reduction as the same action.

Capital-structure content is educational and does not provide investment, legal, tax, accounting, or financing advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Paid-In Capital

Paid-in capital is the amount shareholders contributed to a company through share purchases and related equity issuances.

Share Premium

Share premium is the amount received for issued shares above their nominal or par value.

Revised on Sunday, June 21, 2026