Which of the following does not correctly state the nature or purpose of par value?
A)Par value is a valuable tool used by both the shareholders and the corporation.
B)Par value is the minimum level of investment by owners required by law in some states.
C)The term "stated value" is conceptually equivalent to par value.
D)Some states permit common stock to be issued without either a par or stated value.

Question

Quizplus · Accepted Answer

While par value may be considered an important aspect of stocks, it is not necessarily a "valuable tool" for either shareholders or corporations. Its primary purpose is to set a minimum legal investment level for shareholders, and to provide a base value for the company's stock.

Which of the Following Does Not Correctly State the Nature