The par value of common stock must always be equal to its market value on the date the stock is issued.

Name: The par value of common stock must always be equal to its market value on the date the stock is issued.
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Question

Quizplus · Accepted Answer

The par value of common stock is a nominal amount assigned by the company and has no correlation with its market value. The market value of a stock can vary depending on demand and supply factors in the market.

The Par Value of Common Stock Must Always Be Equal