The par value on common stock has all of the following characteristics EXCEPT
A) a generally low value.
B) some states tax according to the par value.
C) indicates the market value at which the stock was originally sold.
D) stated in the corporate charter.

Question

Quizplus · Accepted Answer

The par value on common stock does not indicate the market value at which the stock was originally sold. Instead, it is a nominal value that is stated in the corporate charter and represents the minimum legal value at which the stock can be issued. It may have a low value, and some states may tax according to the par value, but it does not indicate the market value at which the stock was sold.

The Par Value on Common Stock Has All of the Following