The market value of common stock is completely unrelated to its par value.

Question

Quizplus · Accepted Answer

The market value of common stock is based on various factors such as the company's financial performance, growth prospects, industry trends, and overall market conditions. Par value, on the other hand, is the nominal value assigned to a share of stock and is typically set low to simplify accounting and tax calculations. Therefore, the market value and par value of a common stock do not have a direct relationship.

The Market Value of Common Stock Is Completely Unrelated to Its