Any Subsequent Sale of a Firm's Previously Issued Common Shares

Multiple Choice

Any subsequent sale of a firm's previously issued common shares from one investor to another (such as occurs on public stock exchanges) :

A) increases the recorded amounts of shareholders' equity.
B) decreases the recorded amounts of shareholders' equity.
C) has as no effect on the recorded amounts of shareholders' equity.
D) increases or decreases the recorded amounts of shareholders' equity depending on the facts and circumstances.
E) None of these answer choices is correct.