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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Capital Surplus

Definition:

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.