The par value per share of common stock represents the
A) minimum selling price of the stock established by the articles of incorporation
B) minimum amount the stockholder will receive when the corporation is liquidated
C) dollar amount assigned to each share
D) amount of dividends per share to be received each year

Question

Quizplus · Accepted Answer

The par value per share of common stock represents the dollar amount assigned to each share, typically established in the articles of incorporation. This is not necessarily the minimum selling price or the minimum amount the stockholder will receive when the corporation is liquidated. Additionally, the par value per share does not determine the amount of dividends to be received each year.

The Par Value Per Share of Common Stock Represents the