Additional Paid-In Capital
Additional Paid-In Capital (APIC) is the portion of stockholders' equity that arises when investors pay above the par value of newly issued shares. It remains in equity and is separate from retained earnings, which come from profits.
Example: If a company issues 1,000,000 shares with a par value of $0.01 at $10 per share, the common stock account increases by $10,000 and APIC increases by $9,990,000.
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