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.
E) All of the options are correct.

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 a nominal amount assigned to each share, and the additional paid-in capital, which represents the excess over par value that investors pay.

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