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    kati378's Avatar
    kati378 Posts: 1, Reputation: 1
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    #1

    Mar 1, 2008, 09:39 PM
    Paid-in capital and earned capital
    Why is it important to keep paid-in capital separate from earned capital?
    goldie902's Avatar
    goldie902 Posts: 1, Reputation: 1
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    #2

    Mar 3, 2008, 01:21 PM
    The importance of keeping paid capital separate from earned capital is that stockholders paid based on the earned capital.
    ktm1974's Avatar
    ktm1974 Posts: 1, Reputation: 1
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    #3

    Oct 23, 2011, 03:23 AM
    To keep the sources of capital separate. Earned capital is from operations, paid-in capital is from the sale of stocks.
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