Which of the following is true about the par value of common stock?

Question

Quizplus · Accepted Answer

The Revised Model Business Corporation Act has indeed eliminated the concept of par value for common stock. The other options are incorrect. A) Market value is determined by supply and demand in the market, and is not necessarily related to par value. B) Par value is not necessarily the initial offering price; it is the nominal value per share set in the corporation's articles of incorporation. D) Setting a high par value does not necessarily increase the attractiveness of a stock. E) Par value does not represent the minimum price at which shares can be traded; shares can be bought and sold in the market at any price.

Which of the Following Is True About the Par Value