In a Rising Stock Market, the Result of Any Subsequent

Multiple Choice

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.