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How to Calculate and Account for Stock Issuances

By Motley Fool Staff – Updated Apr 30, 2025 at 3:20PM

Key Points

  • Issuing stock boosts a company's cash but requires precise accounting for the shares.
  • To determine stock issuance proceeds, multiply shares by price and subtract underwriter fees.
  • Stock issuance impacts cash, common stock, and paid-in capital accounts on the balance sheet.
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