If a company's share prices go up from the original issue price, the company will record income for the amount of the gain.

Question

Quizplus · Accepted Answer

A company does not record income for the increase in share prices from the original issue price. This increase in share prices only benefits the shareholders who own the shares, not the company itself. The company may benefit from the increase in share prices if they choose to issue more shares or sell some of their own shares at the higher price.

If a Company's Share Prices Go Up from the Original