A stock's par value is represented by:
A)The maturity value of the stock
B)The price at which each share is recorded
C)The price at which an investor could sell the stock
D)The price received by the firm when the stock was issued

Question

Quizplus · Accepted Answer

The par value of a stock represents the minimum price at which each share can be issued and recorded on the company's balance sheet. It is usually a nominal amount, such as $0.01 or $0.10 per share, and has no real correlation with the market value of the stock or the amount investors are willing to pay for it. Therefore, it is not represented by the maturity value, selling price, or issuing price of the stock.

A Stock's Par Value Is Represented By