Definition of 'Contributed Capital'
Contributed capital is an important part of a company's financial structure. It represents the amount of money that shareholders have invested in the company and is used to finance the company's operations. Contributed capital can also be used to pay off debt or to buy back shares of stock.
The amount of contributed capital a company has can vary depending on its size and stage of development. Small companies often have less contributed capital than large companies. This is because small companies typically have fewer shareholders and less money to invest in the company. Startup companies often have very little contributed capital, as they are just starting out and do not have a lot of money to invest.
Contributed capital is an important part of a company's financial health. It represents the amount of money that shareholders have invested in the company and is used to finance the company's operations. A company with a lot of contributed capital is in a better financial position than a company with little contributed capital.
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