What is the stockholder's minimum financial obligation in the event the corporation is liquidated and its debts are repaid?

Question

Quizplus · Accepted Answer

The stockholder's minimum financial obligation in the event the corporation is liquidated and its debts are repaid is the par value of the firm's stock. This is because the par value represents the minimum amount for which the stock was issued and this is the obligation that the stockholder has to fulfill. Anything above the par value would be considered a premium for the stock.

What Is the Stockholder's Minimum Financial Obligation in the Event