Par value
A) is established for a share of stock after it is issued.
B) is an arbitrary amount assigned to each share of stock.
C) represents what a share of stock is worth.
D) represents the current selling price for a share of stock.

Question

Quizplus · Accepted Answer

Par value is an arbitrary amount assigned to each share of stock and does not necessarily represent the actual value of the stock. It is often set at a low amount (such as $0.01 or $0.10) to satisfy legal requirements for issuing stock. It is not established after the stock is issued and does not necessarily represent the current selling price for a share of stock.

Par Value