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The entries to record investments of shareholders are similar to most other forms of business. A cash or an asset account is debited, and a capital account is credited. A corporation must keep detailed records of shareholders investments if it plans to pay the correct amount of dividends to the appropriate individuals. It also uses these records to sent shareholders financial reports and proxy forms. When corporations issue stock, it rarely sells at its par value. The price of a stock is influenced by many factors.
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