How to Find Additional Paid in Capital from a Balance Sheet

by Calla Hummel

When a company issues and sells new shares of stock, it reports the sale in two lines in the "Shareholders' Equity" section of the balance sheet. First, the company reports the total par value for the new stock. Par value is the legal minimum amount at which the company may sell a share. The company then subtracts that number from the total value of stock sales and reports the additional value as "Paid-In Capital" in the next line.

Get a copy of the company's balance sheet, either directly from the Securities and Exhchange Commission or by searching for the company's profile on the Motley Fool website, going to the bottom of the page and selecting "SEC Filings."

Go to the third section of the balance sheet, "Shareholders' Equity."

Find the "Paid-In Capital" line. The value in that line item represents the additional money that the company generated in that reporting period by issuing stock. All money from stock sales that happened between the dates stated on the balance sheet appears in that line.

Repeat Steps 1, 2 and 3 with balance sheets from other reporting periods and add together the "Paid-In Capital" values to arrive at a total value of additional capital over longer periods of time.

About the Author

Calla Hummel is a doctoral student studying contraband in international political economy. She supplements her student stipend by writing about personal finance and working as a consultant, as well as hoping that her investments will pan out.