What is paid in capital Three example?

Paid-in capital, also known as contributed capital, refers to the total amount of money that shareholders have invested in a company in exchange for stock. It includes the par value of the shares plus any amount paid above par value (additional paid-in capital). For example, if a company issues 1,000 shares with a par value of $1 for $10 each, the paid-in capital would be $10,000, consisting of $1,000 in par value and $9,000 in additional paid-in capital. Other examples include capital raised through preferred stock issuance or common stock issued during an initial public offering (IPO).