The additional paid-in capital account arises when the issue price of a stock is greater than the par value. The excess above the par value paid for the issued stock is added to the APIC account as a surplus. The amount of APIC reported on the balance sheet relative to the common stock amount may provide some information about the company. The larger the APIC account is compared to the common stock account, the more capital was contributed above par value. This could be indicative of a strong financial outlook and expectation for growth of the company when stock was issued. Purchasers were willing to pay a premium above the par value.