An arbitrary value assigned to shares of capital stock and approved by the state when the business is incorporated is referred to as:

Question

Quizplus · Accepted Answer

The par value is an arbitrary value assigned to shares of capital stock and approved by the state when the business is incorporated. It is a nominal value that represents the minimum price at which the shares can be issued. The par value has no relationship to the market value of the stock or the actual value of the company's assets, and it is rarely used in modern corporate finance.

An Arbitrary Value Assigned to Shares of Capital Stock and Approved