Which best describes par value for stock?
A) An arbitrary amount set by the company for each share of stock
B) The value at which stock shares were issued
C) The current market value of the stock
D) The amount expected to be paid out as a dividend on a share of stock

Question

Quizplus · Accepted Answer

The par value is an arbitrary amount specified in the corporate charter for each share of stock. Generally it has no substance from a financial reporting or statement analysis perspective.

Which Best Describes Par Value for Stock