Capital Surplus

  

Categories: Stocks, Accounting

See Paid-In Surplus. 

On a balance sheet, a company is supposed to list all its stock and capital. But what happens when the company issues or sells stock at above face value? The extra they are paid is not an earning or a capital stock. So it goes on its separate line as paid-in surplus or capital surplus. 

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finance a la shmoop- what is compounding value or compounding interest? ah the

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power of compounding. it makes trees stronger pollution more feral and the

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rich well richer. how so well let's start with compounds kissing

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cousin with six toes, arithmetic compounding. right so the first was [feet with six toes pictured]

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interest, the dough comes back to you in a pattern that looks like this - like

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came back to you you know came in small parts all along the way, until you got [list of yearly returns]

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money and collected your thousand bucks at the end that's it. okay so that's

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arithmetic compounding/ the money comes to you if you don't reinvest it.

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ding-ding-ding that's the key here and you just go buy burgers. okay so now

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10-year period .well at the end of year one it's a thousand sixty bucks and note

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we're only gonna compound it annually we probably should do the semi-annually but [list of yearly compounds]

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we'd confuse you even more so don't do that. but then you essentially reinvest

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that money and you get another six percent compounded on that thousand

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sixty , instead of six percent compounded against the original thousand. so by the

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dollars and eighty-five cents. so why do you make so much more money when you

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of getting that sweet sweet cash or getting liquid whatever you want to call

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it. by reinvesting your gains year after year after year. so do you have that sort

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example have trouble making it home from your local pizza spot with the pie

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