Paid-in Capital is the amount of money that shareholders give to a company in exchange of buying its stock and it includes the par value of the stock plus any excess amounts. This consists of common stock and extra paid in capital. It is a vital component of equity of shareholders in the balance sheet and reflects the financial support by the investors. Paid-in Capital can assist a business to finance its operations, growth or research without incurring a debt. It is a long term source of funds and indicates the confidence of the investors in the future of the company.