A stock's par value does not necessarily have any relationship with a stock's market value.

Question

Quizplus · Accepted Answer

Par value is the nominal value of a share of stock set by a company in its articles of incorporation or through a resolution by its board of directors. It is typically a small amount, such as $0.01, and has no real impact on the stock's market value, which is determined by supply and demand factors such as company performance, industry trends, and investor sentiment. Therefore, a stock's par value may be different from its market value, and the two are not directly related.

A Stock's Par Value Does Not Necessarily Have Any Relationship