Earned Capital and Contributed Capital are other names for Retained Earnings and Paid-in Capital. When a company issues common stock they credit the par value (if any) and the paid-in capital account. Discuss the reason why transactions in the daily stock markets (NYSE, etc.) do not affect these two accounts. If a company buys back its own stock how are these accounts affected? Please provide details and examples in your discussion.

Please explain new answer, the pervious post is wrong.