Par value of a stock refers to the:
A)Issue price of the stock.
B)Value assigned per share of stock by the corporate charter.
C)Market value of the stock on the date of the financial statements.
D)Maximum selling price of the stock.
E)Dividend value of the stock.

Question

Quizplus · Accepted Answer

Par value of a stock refers to the value assigned per share of stock by the corporate charter. This value is usually very low and has no correlation with the market value of the stock or the dividend value. It simply represents the stated value of the stock for legal purposes. A stock may be issued at a price above or below the par value.

Par Value of a Stock Refers to The