Asked by
Chris Stansberry
on Nov 30, 2024
Verified
Which of the following is correct with regard to "par value"?
A) It indicates the worth of the stock at issue.
B) It is the minimum price at which the corporation may sell the stock at issuance.
C) It represents the maximum price at which the stock may be sold at issuance.
D) It represents the amount for which the stock must be traded.
Par Value
The face value of a bond or stock as set forth in its certificate.
- Analyze the distinctions between stocks that carry a par value and those that do not, considering their implications for additional capital.
Verified Answer
TR
Learning Objectives
- Analyze the distinctions between stocks that carry a par value and those that do not, considering their implications for additional capital.