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

Question

Quizplus · Accepted Answer

The increase in share prices does not result in a net profit for the company. The company only records a profit when it sells its own shares at a higher price than the original issue price. Otherwise, the gains or losses from fluctuations in share prices are recorded as unrealized gains or losses in shareholders' equity.

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