Paid-up Capital

Paid-up Capital refers to the total amount of money that shareholders have actually paid for their shares. It is a crucial component of a company's equity and fundamentally represents the invested capital that shareholders have committed to the company. This capital is utilized for various business operations, expansion, and sometimes as a financial safety net. Unlike authorized capital, which is the maximum limit that a company can legally raise, paid-up capital only represents the actual funds received from shareholders. For investors and analysts, paid-up capital serves as a key indicator of a company's financial health and shareholder commitment.