Multiple Choice QuestionWhat is par value?Multiple choice question.Something that reflects the market value of the stock at a particular point in timeThe dollar amount printed on the stock certificate that has no relation to actual market valueA practical value that has no stated nominal valueThe current selling price of a bond
Question
Multiple Choice QuestionWhat is par value?Multiple choice question.Something that reflects the market value of the stock at a particular point in timeThe dollar amount printed on the stock certificate that has no relation to actual market valueA practical value that has no stated nominal valueThe current selling price of a bond
Solution
The correct answer is: The dollar amount printed on the stock certificate that has no relation to actual market value.
Par value is a stock's nominal value as stated by the issuing company. It is not related to market value, which can fluctuate based on supply and demand. Par value is often a very small amount that is used for accounting purposes.
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