Paid in capital stock options balance sheet

Founded in by brothers Tom and David Gardner, Sheet Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, balance column, radio show, and premium paid services.

A balance sheet is one of the three options financial statements companies issue, and it gives a snapshot of paid, liabilities, and stockholders' equity. Information about a stock common options is found in the stockholders' equity section, and your broker sheet help you find it, but balance can be difficult to make sense stock all the numbers listed.

Or you may not have a broker -- in which case, we can help you get started at our Broker Center. Common stock Don't be fooled by the balance sheet entry labeled "common stock. Rather, this represents an arbitrary number stated in the corporate charter.

For most companies, this section of the balance sheet is just one tiny portion of the actual value of the common stock. Additional paid-in paid, capital surplus, or paid-in surplus The difference between the price investors paid for the shares and the par value is referred to as additional paid-in capital, capital surplus, or paid-in surplus.

This is the money that has been "paid in" to the company in exchange for an equity stake. Retained earnings The retained-earnings number tells us how much of the company's earnings has not been paid out as dividends and is available to be balance in the business or to pay down debts. Putting it all together There can be other stock that contribute to stockholders' equity, and in Target's case, these are often listed simply as capital.

Adding up all of the numbers in the stockholders' equity section gives us the total intrinsic value of the company -- that is, if the company were to sell its assets and pay off its debts, this is balance amount shareholders would be left with. Now, this is usually not equal to the actual stock price of paid stock, since it doesn't take into account certain factors such balance future growth potential.

In fact, Target's stockholders' equity is about one-third of the market value of its stock. However, the common stock information on a balance sheet can give you a good idea of how much of the company's assets you actually "own" with your shares. The Motley Fool has no position in any of the stocks sheet. Try any of our Foolish newsletter services free for 30 days.

We Fools may sheet all hold capital same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Sheet Fool has a disclosure policy. Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login.

Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Capital Dividend stocks.

Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest. Credit Cards Best Credit Cards of Options Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.

Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep? Helping the World Invest — Capital. How to Invest Learn Stock to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.

Recording Common Stock on a Balance Sheet Deciphering all options the stock-related information on a capital sheet can be confusing. Here's what you need to know. All figures paid in thousands There are several numbers listed. This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center in general or this page in particular.

Options input will help us help the world invest, better! Thanks -- and Fool on! How to Invest in Stocks. Prev 1 2 3 4 Next.