Total stockholders' equity increases when treasury stock is sold for an amount less than its cost.

Name: Total stockholders' equity increases when treasury stock is sold for an amount less than its cost.
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Treasury stock is a company's own stock that it has bought back from the market. When treasury stock is sold, the proceeds are recorded as a reduction to stockholders' equity. If the stock is sold for less than its cost, the difference is recorded as a loss, which further reduces stockholders' equity.

Total Stockholders' Equity Increases When Treasury Stock Is Sold for an Amount