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

Question

Quizplus · Accepted Answer

A stock's par value is a nominal value assigned to shares by the company when they are first issued and is typically very low (e.g. $0.01 or $0.10). It has no relation to the market value of the stock and does not change based on fluctuations in the market. The market value of a stock is determined by supply and demand in the stock market and can fluctuate daily.

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