Contributed capital

One of the two main categories on the balance sheet under owner’s equity (the other is retained earnings). Contributed capital shows what has been invested by stockholder’s through purchase of stock from the corporation (not through purchase of stock on the open market from other stockholders). Contributed capital, in turn, has two main components: Stated capital, which represents the stated, or par value of the shares, and additional paid-in capital, which represents money paid to the company above the par value.

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