Why is it important to keep paid-in capital separate from earned capital?

Why is it important to keep paid-in capital separate from earned capital?.

 

** NO PLAGIARISM. MUST BE ORIGINAL. USE REFERENCES AS NEEDED **

 

Prepare a 700- to 1,050-word response to the following questions:

  • Why is it important to keep paid-in capital separate from earned capital?
  • As an investor, is paid-in capital or earned capital more important? Explain why.
  • As an investor, are basic or diluted earnings per share more important? Explain why.


Why is it important to keep paid-in capital separate from earned capital?

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