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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: LLCF who wrote (5671)7/25/2000 1:33:14 PM
From: Ilaine  Read Replies (2) of 436258
 
Of course there is payment! The stock has value! Only in the new economy we can pretend it doesn't according to you and Don Lloyd.

The transaction does show up on the balance sheet, but it's not an expense. The stock was an asset of the corporation until it was transferred to the vendor, now it's no longer an asset of the corporation, and the corporation is worth less. The corporation doesn't have infinite shares.
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