Additional paid in capital (APIC) is a component of shareholders’ equity that represents the excess amount of money that investors have paid for a company’s shares over their par value. Par value is the nominal or face value of a share, which is usually a very small amount. For example, if a company issues 100 shares of common stock with a par value of $1 per share and sells them for $10 per share, its APIC is $900 ($10 - $1 x 100). APIC reflects the initial contribution of shareholders to the company’s equity and does not change unless new shares are issued or existing shares are repurchased.