If a company issues $5 par value common stock,

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The par value represents the legal capital of the company and is typically recorded in the Common Stock account on the balance sheet. In this case, the par value is $5 per share, which means that $5 per share will be recorded in the Common Stock account. The actual market price of the stock may be higher or lower than the par value, and shareholders may or may not receive dividends depending on the company's profitability and dividend policy. Liabilities are not affected by the issuance of common stock.

If a Company Issues $5 Par Value Common Stock