Why does purchase of common stock reduce its paid in capital common stock? ex: existing common stock
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Question:
Why does purchase of common stock reduce its paid in capital common stock?
ex:
existing common stock 240million (par $1)
a. purchase of common stock 6 million (par $1)
b. sold common stock 4million (par $1)
how come these two activities reduce common stock to 238million?
I need detailed answer please
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