Today, we will talk about the subject of Additional Paid-in Capital, which refers to money an investor pays above and beyond the par value price of a stock. It is an accounting term and represents a profit opportunity for companies. During its IPO, a firm is entitled to set any price for its stock that it sees fit, and investors may elect to pay any amount above the declared par value of a share price, which generates the APIC. APIC is generally booked in the SE section of the balance sheet, while the cash generated from the sale of stock is recorded in the asset section of the balance sheet.
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