Proceeds from a company's sale of stock to the public are included in
A)par value.
B)additional paid-in capital.
C)retained earnings.
D)par value and additional paid-in capital.

Question

Quizplus · Accepted Answer

Proceeds from a company's sale of stock to the public are typically divided into two parts: the par value, which is the nominal value of the stock, and the additional paid-in capital, which represents the amount over the par value that investors are willing to pay.

Proceeds from a Company's Sale of Stock to the Public