Most corporations set par value low and issue common stock for a price above par called a premium.

Name: Most corporations set par value low and issue common stock for a price above par called a premium.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

This is true as most corporations want to set par value low to give them flexibility in setting the selling price for their shares. This allows them to issue common stock for a price above par called a premium, which can provide additional capital for the company.

Most Corporations Set Par Value Low and Issue Common Stock