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Finance Dictionary and Glossary of Investment Terms
The price paid by investors per share at issue minus the par value per share, times the number of shares issued. Paid-in surplus is recorded in the balance sheet under the shareholders' equity section. also called additional paid-in capital.
An instrument used by companies to hedge against the risk of weather-related losses. The investor who sells a weather derivative accepts the risk by charging the buyer a premium. If nothing happens, then the investor makes a profit. However, if the weather turns bad, then the company claims the money.