Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Our platform provides a seamless experience for finding precise answers from a network of experienced professionals. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
The funds provided by common stockholders that consist of common stock, paid-in capital, and retained earnings are referred to as the firm's Net Worth.
What is paid in the capital?
Paid-in capital is the amount that businesses get from stockholders in exchange for their shares. A significant component of a company's entire equity is this. Either preferred stock or the common stock may be used as paid-in capital. These monies are only obtained through the issuer's direct sales of shares to investors; they are not derived from any operating activities or from the sale of stock on the secondary market to other investors.
Paid-in capital does not include earnings from continuing business operations; it only includes money earned from the sale of stock.
If a company decides to repurchase shares from its owners, the balance in paid-in capital may be reduced; this can either be done directly in the account or it can be recorded in a contra equity account that is linked with and offsets the paid-in capital account.
Thus, the investor's money is called Net Worth.
For more information on Net Worth, refer to the given link:
https://brainly.com/question/12294231
#SPJ4
Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
