What is the meaning of "par value" when discussing common stock?
A) The current price of a share of stock
B) The selling price of the previous day's last transactions involving that stock
C) The average price paid on the previous day's trades
D) The face value of a share of common stock
E) One dollar

Question

Quizplus · Accepted Answer

"Par value" refers to the face value of a share of common stock, which is typically quite small, such as one cent or one dollar. It is often used for legal purposes and does not necessarily reflect the current market value of the stock.

What Is the Meaning of "Par Value" When Discussing Common