The par or stated value of common stock is important for
A)accounting purposes only.
B)helping the investor determine the stock's intrinsic value.
C)helping the board of directors determine the dividend payout.
D)helping the market determine the trading price of the stock.

Question

Quizplus · Accepted Answer

The par or stated value of common stock is primarily used for accounting purposes, such as recording the minimum legal capital in the company's financial statements. It does not influence the stock's intrinsic value, dividend payout, or market trading price.

The Par or Stated Value of Common Stock Is Important