What is additional paid in capital?

[niki]

I saw this term in a balance sheet. What is additional paid in capital, and how does it affect a company’s financial position?

 

[robert]

Additional Paid-in Capital is the money that investors have paid in excess of the face value of stocks when purchasing stocks from a company. APIC can be found in the equity section of the balance sheet and indicates extra capital that boosts the company without creating debts.

 

[Peter]

Additional paid-in capital (APIC) is the extra amount investors pay above a stock’s face value when buying shares from a company, usually during stock issuance. It appears in shareholders’ equity on the balance sheet and represents funds raised beyond the nominal value of the stock.