Paid in Capital

Paid in Capital is the value of the assets invested in the company by the stockholders.  This is different than the concept of earned capital.  Paid in capital are investments in cash, or other assets in a company, that are exchanged for shares of capital stock.  Usually paid in capital investments by stockholders are never withdrawn from the company, and is considered a permanent source of capital.

Paid in capital can be found in the owner's equity section of the balance sheet.