USA Additional Paid-In Capital


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If the XYZ (which is already public) sells new shares in a secondary offering then it is my belief that the money they get for the shares above the book value of the company will be added to additional pain-in capital. Am I correct?
 
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kirby

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If stock to be issued has a $2.00 par value then if stock is sold for any amount higher than $2.00 per share that extra is recorded to Paid in Capital in Excess of Par account also known as Additional Paid-in Capital account.
 
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The amount of par value is added to (presumably) Common Stock Outstanding, with the excess recorded in Additional Paid-in Capital.
 

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