Which of the following is correct with regard to "par value"?
A) It is the minimum price at which the corporation may sell the stock at issuance.
B) It represents the maximum price at which the stock may be sold at issuance.
C) It represents the amount for which the stock must be traded.
D) It indicates the worth of the stock at issue.

Question

Quizplus · Accepted Answer

Par value is the minimum price at which a corporation is allowed to sell its shares at the time of issuance. It does not necessarily represent the market value of the stock after it is issued.

Which of the Following Is Correct with Regard to "Par