just a friendly 5-6 sentense Discussion question response to a classmate. adding on to what they said

Earned Capital and Contributed Capital are other names for Retained Earnings and Paid-in Capital. Paid-in capital tells an analyst how much money has been invested in a business, and earned capital / retained earnings tells the analyst how much money has been generated by the companys operations and investments. When a company issues common stock they credit the par value (if any) and the paid-in capital account. Par value is the value of a single common share as set by a corporations charter. It is not typically related to the actual value of the shares. In fact it is often lower. Transactions in the daily stock market do not affect these two accounts because the sales in the stock market are not going to be in the corporations accounting books. The same goes for if a company buys its own stock, it will not be going into the corporations accounting books