Yatırımcı.AI

Paid-in Capital

Paid-in capital is the total nominal value of a company’s issued shares; it equals the number of shares multiplied by the nominal value per share. Paid-in (issued) capital is the capital amount stated in the articles of association and subscribed and paid by shareholders.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Official sources
  6. 6.Frequently asked questions

Key Points

  • Listed companies under the registered capital system also have a registered capital ceiling; within the period permitted by the CMB, the board can raise capital up to this ceiling without a general meeting resolution.
  • Paid-in capital does not show a company’s market value or real size; market value is the number of shares multiplied by the market price.
  • do not confuse paid-in capital with equity; equity also includes reserves and retained earnings.

Formula / Calculation

Paid-in capital = Number of shares × Nominal value per share. For shares with a nominal value of TRY 1, paid-in capital in TRY equals the number of shares. The ratio of a bonus or rights issue is the amount of the increase divided by the existing paid-in capital.

Interpretation

Paid-in capital does not show a company’s market value or real size; market value is the number of shares multiplied by the market price. Because the share count rises after capital increases, earnings per share and price history should be read on an adjusted basis.

Pitfalls

do not confuse paid-in capital with equity; equity also includes reserves and retained earnings. A bonus issue increases paid-in capital without bringing in new funds. The registered capital ceiling is not issued capital.

Official Sources

Official regulation and sources the definition is based on.

Pages Where This Term Appears

Related Terms

Frequently Asked Questions

Paid-in capital is the total nominal value of a company’s issued shares; it equals the number of shares multiplied by the nominal value per share.

Paid-in capital = Number of shares × Nominal value per share. For shares with a nominal value of TRY 1, paid-in capital in TRY equals the number of shares. The ratio of a bonus or rights issue is the amount of the increase divided by the existing paid-in capital.

Prepared by: Yatırımcı.AI Research TeamLast reviewed: Method: MethodologyEditorial policy