What is the meaning of Capital Surplus?

Capital Surplus refers to the accounting difference between the amount received by the initial sale of a corporation's stock less the par value of that stock. Since many new issues are sold at prices in excess of the par value, the proceeds component can be significant. Other related terms are Paid-In Capital or Paid-In Surplus.

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APABarry Goldsmith. (2010). capital surplus. Retrieved September 25, 2026, from http://smartdefine.org/capital_surplus/definitions/1149408
ChicagoBarry Goldsmith. 2010. "capital surplus" http://smartdefine.org/capital_surplus/definitions/1149408 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, capital surplus, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/capital_surplus/definitions/1149408>.
MLABarry Goldsmith. "capital surplus" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/capital_surplus/definitions/1149408>