The par value of the outstanding shares is known as

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The par value of the outstanding shares is known as legal capital. This refers to the minimum amount of capital that a company must maintain in order to operate as a business entity. It is usually set at a nominal amount per share and is recorded in the company's books as part of its equity. Retained earnings refer to the portion of a company's net income that is kept in reserves rather than paid out as dividends. Book value of equity refers to the difference between the company's assets and liabilities, while additional paid-in capital refers to the amount of capital that has been raised by the company above its par value through the sale of shares.

The Par Value of the Outstanding Shares Is Known as