The par amount of common stock represents:
A) The arbitrary dollar amount assigned to a share of stock.
B) The liquidation value of a share.
C) The book value of a share of stock.
D) The amount received when the stock was issued.

Question

Quizplus · Accepted Answer

The par amount of common stock is an arbitrary dollar amount assigned to a share of stock by the company's charter. It does not necessarily reflect the stock's market value, book value, or liquidation value.

The Par Amount of Common Stock Represents