Match the terms to the definitions.
-The arbitrary amount that establishes a minimum issue price for the stock.

Question

Quizplus · Accepted Answer

Par value is a nominal value assigned to a security by the issuer. For stocks, it is the original cost of the stock shown on the certificate; it is a static value that does not fluctuate with the market price. It is often set at a minimal amount, like $0.01 or $1.00, and is used to determine the minimum price at which shares can be issued. It has little to do with the actual market value of the stock.

Match the Terms to the Definitions