The Houston Corporation started the year with 190,000 shares of common stock but issued 40,000 more shares on April 1 of the current year. It will issue 300,000 shares of new common stock.The issuance of common stock in exchange for cash is reported in: a. The operating activities section of the statement of cash flows. You can trade shares of common stock for land or other assets. In this type of deal, you take ownership of the land and the seller gets a stake in your company. Private companies can issue stock to raise money. For example, a technology startup may be categorized as a growth stock. Income stocks regularly pay dividends to shareholders. A company may fully pay all dividends (even prior years) to preferred stockholders before any dividends can be issued to common stockholders.