PREMIUM ON CAPITAL STOCK Definition

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PREMIUM ON CAPITAL STOCK is excess received over the par value of stock issued. The premium account is shown under the paid-in capital section of stockholders equity because it resulted from the issuance of stock. It is not an income statement account since the company earns profit by selling goods and services to outsiders, not by issuing shares of stock to owners.

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HISTORICAL EXCHANGE RATES are just that: The historical data on currency exchange rates.

MATERIAL is information important enough to change an investor's decision. Insignificant information has no effect on decisions, so there is no need to report it.

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