No gains or losses are ever recorded by a company when they sell or issue shares of their own stock.

Question

Quizplus · Accepted Answer

When a company issues or sells shares of its own stock, it is not considered a gain or loss because the transaction involves the transfer of ownership within the company. The company's total equity remains the same, as the proceeds from the sale of shares are added to the company's cash balance and the number of outstanding shares is increased.

No Gains or Losses Are Ever Recorded by a Company