Common Stock
Common stock is measured at historical cost the amount received from investors when the stock is issued Initially, most corporations designate a par or stated value for their stock, and as each share of common stock is sold, an amount equal to the par or stated value is reported in the common stock section of the balance sheet. Any differences between selling price and par value are then reported under the caption “additional paid-in capital” These captions have no particular accounting significance except perhaps to determine an average issue price of common stock if such a computation seems meaningful. Companies may also issue more than one class of common stock. The additional categories such as class B common generally carry fewer voting rights than class A shares .