Proceeds from the Issuance of Shares Appear in Which, If

question 8

Multiple Choice

Proceeds from the issuance of shares appear in which, if any, section of the cash flow statement?

• A) investing activities section
• B) financing activities section
• C) operating activities section
• D) Proceeds from the issuance of shares do not appear in the cash flow statement.

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Definitions:

Secondary Markets

Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.

Original Issue

The first issuance of a security or financial instrument to the public or to investors.

Securities

Securities that signify holding an equity stake in a company listed on the stock market, a debt interest in a corporation or government entity through bonds, or entitlement to ownership through options.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account, following the initial purchase, to continue holding an investment.