A share's par value is equal to the market value of the share on the last day of the fiscal year for a firm.

Question

Quizplus · Accepted Answer

The par value of a share is a nominal value assigned to a share by a company and has no relation to the market value of the share. Usually, the par value is set at a very low amount and is used for accounting and legal purposes. The market value of a share, on the other hand, is determined by the forces of supply and demand in the stock market and can fluctuate based on various factors.

A Share's Par Value Is Equal to the Market Value