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Par Value is a nominal value assigned to the share. It is printed on the face of each of the corporation’s stock certificates. The minimum amount that the share is allowed to be sold is not the basis for the market value. Sale Price above Par Value is selling the stock at a premium.
7 Αυγ 2024 · The par value, a term often used interchangeably with the face value , is the nominal value of a share, bond, or other related securities on their date of issuance. The par value of a bond is its face value, i.e. the principal the issuer is obligated to repay at the end of the bond’s term.
Par Value pertains to the per share amount of the common stock that will appear on stock certificates. This concept implies that the issuing company will not share below the par value. In the company’s balance sheet, the total par value of the shares shall be reported for each class of stock.
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1.The par value is not the same as the market value of the stock. 2The par value is a nominal amount identified in the corporate charter. 3.The par value is the amount credited to the common stock account when the stock is issued.
