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What is the "par value" of a stock?
Posted on 5/30/16 at 7:38 pm
Posted on 5/30/16 at 7:38 pm
I have some old paper stock certificates and each one has a "par value" amount printed somewhere on the certificate. What does that value mean?
This post was edited on 5/30/16 at 7:40 pm
3
Posted on 5/30/16 at 7:53 pm to Spankum
the stated value of a stock from a corp's charter
Posted on 5/30/16 at 7:54 pm to Spankum
quote:
I have some old paper stock certificates and each one has a "par value" amount printed somewhere on the certificate. What does that value mean?
The price the stock was issued at, modern day stocks are usually issued at .01 or nothing at all.
Posted on 5/30/16 at 9:35 pm to Spankum
An antiquated value used to calculate a company's capital stock. The majority of the company's equity capital on its balance sheet will typically be comprised of the excess over this amount times the shares sold, which equals the additional paid-in capital. The sum of these two amounts equals the total capital received from the share of stock.
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