If two individuals invest 15 thousand dollars each and. .. . . . .?

Question

each are given shares of stock will assets and liabilities increase of decrease?

Answer 1

IT DEPENDS ON HOW THE STOCK DOES. YOU SHOULD REALLY INVEST ON YOUR OWN RATHER THAN WITH SOMEONE.

Answer 2

If youre talking about Balance sheet entries, then holding stocks will neither increase of decrease.

The cash paid for the investment is worth exactly that amount, so you decrease cash in the first entry, and increase receivables in the second. As for the libalities side, it does not get affected. However, the equity portion in their balance sheet would have to be adjusted for the *shift* of money allocation. Each owner's Equity would decrease by the 15,000 and a Stocks entry would be created for that equal amount.

Any extra future revenue (or loss) would have to be adjusted within the receivables (on the Assets side) and within the Stocks entry (on the Liabilities and Owner's Equity side).

Hope this is helpful!

Answer 3

Do you realize your question depends on a multitude of happenings.  What is the investment in?  What leangth of time is the contract? What are the shares worth now.  etc, etc, etc, etc, etc, etc, etc, etc, etc

Undoubtably one of the most facitious questions I have ever heard.  

Are either one of you graduates of grade school  yet?

Answer 4

yep - they will

what?

If I buy them

then the price will DEFINITELY decrease

Answer 5

SURE??????????????

Answer 6

If you two both want to invest in something you should invest in FTA. You can make a lot of money.

http://www.sdfta.com

Answer 7

huh?

if company goes bankrupt your investment isnt safe but you wont be liable cos you had nothin to do with running of the company

Answer 8

both will increase

Answer 9

Assets and liabilities will remain the same balance.  You've only traded one asset (cash) for another (Stock).  Not sure why your example has 2 individuals.

Answer 10

That depends how well the stock does.

Answer 11

15 thousand will remain 15 thousand no matter if the vessel of investment is stocks, bonds or kumquats.