Par value has a direct relationship to the market value of the common stock.

Name: Par value has a direct relationship to the market value of the common stock.
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Question

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Par value is a nominal value assigned to a share of common stock and it does not have a direct relationship with the market value of the stock. The market value of a stock is determined by the supply and demand for the stock in the market.

Par Value Has a Direct Relationship to the Market Value