answersLogoWhite

0

All Stock is listed under Owners Equity or also known as Stockholders Equity. If you look at the Accounting Equation you understand that

Assets = Liabilities + Owners (Stockholders) Equity

Assets maintain a Debit Balance, while Liabilities maintain a Credit Balance. OE (Stockholders Equity) also will maintain a Credit Balance. Therefore stock will maintain a "Credit" Balance.

The only exception to this rule is "Treasury" stock which is stock purchased back by the company to reduce outstanding stock. Although Treasury Stock is still listed in Equity, it is listed as a negative number (or rather a debit).

User Avatar

Wiki User

12y ago

What else can I help you with?