Par value
A)is established for a share of stock after it is issued.
B)is the legal capital established for a share of stock.
C)represents what a share of stock is worth.
D)represents the original selling price for a share of stock.

Question

Quizplus · Accepted Answer

Par value is the legal capital established for a share of stock. It is typically set at a low amount (such as $0.01 or $0.001) and represents the minimum amount of value that must be contributed by the shareholder in exchange for the stock. It is not necessarily the same as the actual worth of the share or the original selling price.

Par Value