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

Question

Quizplus · Accepted Answer

Par value is the minimum price at which the corporation may sell the stock at issuance. It is a nominal value assigned to each share of stock and is usually a small amount, such as $0.01 or $0.10. It is not necessarily an indication of the actual worth of the company or its stock.

Which of the Following Is Correct with Regard to "Par