what is paid up capital 
paid up capital is the amount of money a company has received from shareholders in exchange for shares of stock paid up capital is created when a company sells its shares on the primary market directly to investors usually through an initial public offering ipo when shares are bought and sold among investors on the secondary market no additional paid up capital is created as proceeds in those transactions go to the selling shareholders not the issuing company investopedia julie bangunderstanding paid up capitalpaid up capital also called paid in capital or contributed capital is arrived at from two funding sources the par value of stock and excess capital each share of stock is issued with a base price called its par typically this value is quite low often less than 1 any amount paid by investors that exceeds the par value is considered additional paid in capital or paid in capital in excess of par in the shareholders equity section of the balance sheet the par value of issued shares is listed as common stock or preferred stock share capital may appear as for example if a company issues 100 shares of common stock with a par value of 1 and sells them for 50 each the shareholders equity of the balance sheet shows paid up capital totaling 5 000 consisting of 100 of common stock and 4 900 of additional paid up capital paid up capital vs authorized capital