In a rising stock market, the result of any subsequent sale of a firm's previously issued common shares from one investor to another (such as occurs on public stock exchanges):
a. the total paid-in capital amount reported on a balance sheet will usually be less than the current market value of the common shares.
b. the total paid-in capital amount reported on a balance sheet will usually be greater than the current market value of the common shares.
c. the total paid-in capital amount reported on a balance sheet will usually be equal to the current market value of the common shares.
d. the total paid-in capital amount reported on a balance sheet will be eliminated.
e. None of these answer choices is correct.
A
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