The par value of stock constitutes the legal capital of a corporation.

Name: The par value of stock constitutes the legal capital of a corporation.
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The par value of stock is the minimum price at which a share of stock can be sold and is considered to be the legal capital of a corporation. This legal capital serves as a measure of the company's financial strength and stability, as it represents the amount of money that the company is required to maintain for the protection of its investors.

The Par Value of Stock Constitutes the Legal Capital of a Corporation