additional paid-in capital business definition

Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements will show $1 in common stock and $9 in additional paid-in capital for each share issued. Also called capital contributed in excess of par value, capital surplus, paid-in surplus.