Answered

The par value of common stock represents the___________.

a. liquidation value of the stock
b. book value of the stock
c. amount received by the corporation when the stock was originally issued
d. legal nominal value assigned to the stock

Answer :

Nyctalus

Answer: Option D

Explanation: A share's par value is the value specified in the corporate charter below which shares of that class can not be sold on the initial offer; the issuing company agrees not to sell additional shares below par value, so shareholders can be assured that no one else will obtain a more desirable share price.

The nominal value of the stock  of a company is an unreasonable value assigned for the purposes of the reporting in the balance sheet when the company issues shares.

Hence from the above we can conclude that the correct option is D.

Other Questions