Ask Experts Questions for FREE Help !
Ask
    StudyPro's Avatar
    StudyPro Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Sep 13, 2010, 08:34 PM
    What is Par Value per share common stock?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Sep 14, 2010, 01:32 AM

    Par value is the face value. Even though it's a dollar amount, it's not a "worth" and does not usually coincide with market value. It's likely the amount it was initially sold for in an initial public offering, and it's also the lowest amount the stock is ever supposed to be sold for.

    Sometimes called "legal" value. In some places a par is required by law, but not in most. If there is a par, the company books will reflect the portion of a sales price that is par and the portion which is over par.
    StudyPro's Avatar
    StudyPro Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Sep 14, 2010, 08:55 PM
    OK... it's the minimum selling price of the stock noted by the articles of incorporation. I get it... thanks for your assistance
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #4

    Sep 14, 2010, 10:56 PM

    You're welcome.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

A corporation had stockholders' equity on January 1 as follows: Common Stock, $5 par [ 3 Answers ]

A corporation had stockholders' equity on January 1 as follows: Common Stock, $5 par value, 1,000,000 shares authorized, 500,000 shares issued; Contributed Capital in Excess of Par Value, Common Stock, $1,000,000; Retained Earnings, $3,000,000. Prepare journal entries to record the following...

What is the value of a share of common stock? [ 1 Answers ]

QPT paid a $3 per share dividend yesterday. The dividend is expected to grow at 7% per year for the foreseeable future. QPT has a beta of 1.6, a standard deviation of returns of 28%, and a required return of 19%. What is the value of a share of QPT common stock? A financial analist expects L....

Calculating Earnings per Share for common stock [ 1 Answers ]

Net Income: $300,913 Avg. Outstanding common stock: 102,000 Preferred Dividends: $0 Amount shares are worth: Unknown - not given I keep coming up with 2.95 - is this correct?

Par value/common stock [ 1 Answers ]

Sold 20,000 shares of common stock for $25 a share. The stock has a $1 par value. One hundred thousand shares have been authorized for sale. how would I do this problem and put it on the owner's equity part of a spread sheet? It just doesn't make sense

View more questions Search