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Title: The par value of a stock....? Post by: JimmerFredette on July 22, 2011, 12:19:49 AM A.is legally significant.
B.reflects the most recent market price. C.is selected by the SEC. D.is indicative of the worth of the stock. Title: Re: The par value of a stock....? Post by: drmark27 on July 22, 2011, 01:03:52 AM None of the above. Stocks will typically have a par value of $0.01 or none at all. It is set by the company itself and may represent the company's liability to shareholders should the stock take a turn for the worse.
Title: Re: The par value of a stock....? Post by: JoeyV on July 22, 2011, 06:10:31 AM Agree with drmark, but the least wrong answer is A. B. is wildly not true as the par value of BRK.A could be 0.01 (I'm too lazy to look). C is just not true as the SEC has nothing to do with it. D is untrue as I would say the worth of a stock is something like its market value. A. makes a little sense because a company can't pay dividends leaving it with less capital than the par value of the stock, for instance.
Title: Re: The par value of a stock....? Post by: jeff410 on July 22, 2011, 03:32:32 PM A. is legally significant.
Its the face value of the stock, which is the value of the legal claim on the stock. |