A monetary value assigned to and printed on each share of stock is called ________.
A)additional paid-in capital
B)paid-in capital
C)par value
D)retained earnings

Question

Quizplus · Accepted Answer

Par value is the monetary value assigned to each share of stock, often set at a low amount such as $0.01 or $0.001. This value is printed on the stock certificate and helps establish a minimum value for the shareholder's investment. Additional paid-in capital refers to the amount of money received from shareholders that exceeds the par value of the stock, while paid-in capital is the total of both par value and any additional paid-in capital. Retained earnings refer to the portion of a company's profits that are kept within the company rather than distributed to shareholders as dividends.

A Monetary Value Assigned to and Printed on Each Share