Asked by Katelyn Goodridge on Jun 10, 2024
Verified
Par value
A) is the monetary value assigned per share in the corporate charter
B) represents what a share of stock is worth
C) represents the original selling price for a share of stock
D) is established for a share of stock after it is issued
Par Value
The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.
Corporate Charter
A corporate charter is a legal document establishing a corporation and outlining its structure, objectives, and operations as recognized by the state.
- Grasp the concept of par value and how it is determined for a share of stock.
Verified Answer
JU
Joseph UlengcoJun 14, 2024
Final Answer :
A
Explanation :
Par value is the monetary value assigned per share in the corporate charter. It is not the actual worth of a share or the original selling price for a share, but rather a nominal value used for legal and accounting purposes. The par value is established at the time the company is incorporated and does not change unless the company goes through a stock split or reverse stock split.
Learning Objectives
- Grasp the concept of par value and how it is determined for a share of stock.