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Re: Maria56 post# 96042

Sunday, 04/07/2024 6:18:09 PM

Sunday, April 07, 2024 6:18:09 PM

Post# of 100060
Maybe the explanation from Quora below will help. The relevant part is this

The cash balance will increase because the company has received cash from the sale of the stock. The equity balance will increase because the sale of stock creates new shares that represent ownership in the company.


Neither $mONI's equity balance nor its cash balance increased from the shares issued for CASH in 2023.

What is the effect of selling stock on a company's balance sheet?
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Former Finical Advisor (2020–2023)Author has 85 answers and 14K answer views1y

Selling stock refers to the process of issuing and selling ownership shares in a company to investors in exchange for cash. The effect of selling stock on a company's balance sheet will depend on the amount of cash received from the stock sale, how the proceeds are used, and the terms of the stock issuance.

In general, selling stock will increase the company's cash balance and equity. The cash balance will increase because the company has received cash from the sale of the stock. The equity balance will increase because the sale of stock creates new shares that represent ownership in the company. This increases the company's total equity, which is the difference between its assets and liabilities.

However, selling stock also has potential drawbacks that can negatively impact a company's balance sheet. For example, if the company issues too many shares, the value of each existing share may decrease, which can reduce the company's overall market value. Additionally, if the company uses the proceeds from the stock sale to acquire new assets, such as property or equipment, this may increase the company's liabilities and decrease its equity.

In conclusion, the effect of selling stock on a company's balance sheet will depend on several factors, including the amount of cash received, how the proceeds are used, and the terms of the stock issuance. While selling stock can increase a company's cash and equity, it can also have negative effects on the balance sheet if not managed carefully.



https://www.quora.com/What-is-the-effect-of-selling-stock-on-a-companys-balance-sheet