Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each. Ted bought 10 shares at that price. Today, Ted sold his shares to David for $25.00 each. What is the market value of the stock?
A) $50.00
B) $25.00
C) $20.00
D) $19.99
E) $0.01

Question

Quizplus · Accepted Answer

The face value of the stock is not relevant to the market value. The market value is determined by what the stock is currently selling for. Ted purchased his shares for $20 each, and then sold them to David for $25 each. This means that the market value of the stock is $25 per share. Therefore, the correct answer is B) $25.00.

Mega Computer Issued Stock with a Face Value of One