Paid Up Capital

Paid-up capital, also referred to as contributed capital or paid-in capital, denotes the funds a company has received from its shareholders in exchange for shares/stocks. This amount represents the tangible capital accumulated by the company through the sale of its shares directly to investors in the primary market, often through an initial public offering (IPO). In secondary market transactions among investors, no new paid-up capital is generated, as the proceeds from such transactions benefit the selling shareholders rather than the issuing company.