The par value of a stock reflects a buyer's willingness to invest in a business firm.

Name: The par value of a stock reflects a buyer's willingness to invest in a business firm.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The par value of a stock represents the face value assigned to a share by the company at the time of issuance. It does not reflect a buyer's willingness to invest in the business firm. The market value of a stock is a better reflection of investor sentiment towards a company.

The Par Value of a Stock Reflects a Buyer's Willingness