WHAT IS COMMON STOCK “PAR” VALUE?

WHAT IS COMMON STOCK “PAR” VALUE?

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DEFINITION:

For common stock, the value on the books of the corporation. It has little to do with market value or even the original price of shares at first issuance. The difference between par and the price at first issuance is carried on the books of a corporation as “paid-in capital” or “capital surplus.”

Par value for preferred stocks is also liquidating value and the value on which dividends (expressed as a percentage) are paid, generally $100 per share.

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