How to get premium account in rapid share free?

What is the purpose of a share premium account?

• Companies from time to time sell more stocks to raise capital that they can deploy. This capital is raised above par value usually (the value the stock was originally issued for at IPO), I think. The excess amount goes into a share premium account, which cannot be deployed by the company for expansion purposes or day-to-day ops. Would this money be sitting in the bank and be usually used for share-buy backs alone? http://www.readyratios.com/reference/accounting/share_premium.html It seems really silly. Any idea why the company keeps it, if it can't touch that capital?

• Answer:

  Share Premium account or Additional paid in capital - is a premium paid for the purchased stock. Its an Equity account - meaning shows up on a balance sheet. It is not necessary to split the actual funds between bank accounts. The trick is those funds are "non-distributable reserves" - can not be depleted on shareholder distributions, but can be spent on anything else, including operations, usually outlined in company's bylaws.