Paid-Up Capital is a term that is often used interchangeably with paid-in capital, although it can also refer specifically to the amount of capital that a company has received from shareholders in exchange for the issuance of common stock. Paid-up capital represents the amount of money that shareholders have invested in a company by purchasing common stock, and it is recorded on the company's balance sheet under the equity section.Paid-up capital is different from retained earnings, which are the profits that a company has made and has chosen to reinvest in the business rather than distribute to shareholders as dividends. Paid-up capital represents the initial investment that shareholders have made in a company, while retained earnings represent the accumulation of profits over time.Paid-up capital is an important source of funding for a company and is used to finance the company's operations, pay debts, and make investments. It can also be used to calculate the company's book value, which is the total value of a company's assets minus its liabilities. The book value per share is calculated by dividing the company's total book value by the number of shares outstanding.
