No Gains or Losses Are Ever Recorded by a Company

question 96

True/False

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

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Definitions:

Common Dividends

Dividends distributed to holders of common stock, often based on the company's profitability and declared by its board of directors.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Common Shares

Equity securities that represent ownership in a company, giving shareholders voting rights and a share in the company's profits through dividends.