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    lgbanks's Avatar
    lgbanks Posts: 3, Reputation: 1
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    #1

    Jul 3, 2008, 08:12 PM
    Paid in capital
    Why is it important to keep paid-in capital separate from earned capital?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 4, 2008, 03:00 PM
    Paid-in capital is what is coming in from the investors, and earned "capital" (retained earnings) is what the company is earning from doing business. While all of it is equity and all of it "belongs" to the owners, they are entirely different things.
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