Issuing Common Stock
A company may issue its’ common stock at par value, below the par value or above the par value. When a company issues common stock below the par value, the company will transfer an amount equivalent to the aggregate par value to the common stock account. The amount in excess of the aggregate par value of the common stock is then transferred to the Share premium account.
Assume that Green Marketer Ltd is a public listed company. On 2nd June 2010, it issued 10,000 shares of its common stock with a par value Continue reading...