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How to Calculate Additional Paid-In Capital in Accounting

By Motley Fool Staff – Updated Apr 29, 2025 at 10:38 PM
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Key Points

  • Additional paid-in capital occurs when shares sell above their initial issue price.
  • In an IPO, this capital is calculated from the difference between issue and sale prices.
  • Post-IPO, only company-sold shares impact additional paid-in capital, not daily trades.
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