## The par value per share of stock

Equity Analysis: What Is McDonald's Earnings Per Share (Basic) For The Fiscal Year Ended 12/31/2013? What Is The Return On Equity (ROE) For McDonald's For  Becker Company is a publicly held corporation whose \$1 par value stock is actively traded at \$20 per share. The company issued 1,000 shares of stock to acquire

It is the legal value per share that appears on the share certificates and is usually small (\$0.01, \$0.0001 etc) and is not connected to the market value of shares. Also, note that the Par value of a stock is quite different than the par value of the bond. In the case of par value (bond), this is the issued price of the bond. What is Par value of Share? Par value of shares also known as the stated value per share is the minimal shares value as decided by the company which is issuing such shares to the public and the companies then will not sell such type of shares to the public below the decided value. In other words it is the share nominal amount (\$1, \$0.1 or \$0.001) mentioned on the stock certificate at the time Definition of Par Value Par value is a per share amount that will appear on some stock certificates and in the corporation's articles of incorporation. (Some states may require a corporation to have a par value while others states do not require a par value.) (Par value can also refer to an amoun Towards the high end of the range, AT&T's par value is \$1 per common share; by contrast, Apple has a par value of \$0.00001 per share (that's a thousandth of a penny.) Par value of common stock Similarly, the value of the preferred stock is calculated by multiplying the number of preferred shares issued by the par value per share. Therefore, par value is more important to a company's The par value per share of common stock represents the minimum selling price of the stock established by the articles of incorporation. the minimum amount the stockholder will receive when the corporation is liquidated an arbitrary amount established in the articles of incorporation the amount of dividends per share to be received each year Par Value for Preferred Stock. The par value of a share of preferred stock is the amount upon which the associated dividend is calculated. Thus, if the par value of the stock is \$1,000 and the dividend is 5%, then the issuing entity must pay \$50 per year for as long as the preferred stock is outstanding. Par Value for Bonds

## Face value of shares or nominal value, is the value shown on the face of security Book value per share = total assets – total liabilities / total number of shares

Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. Par Par value stock is a type of common or preferred stock having a nominal amount (known as par value) attached to each of its share. Par value is the per share legal capital of the company that is usually printed on the face of the stock certificate. It is also known as stated value and face value.. A company is free to choose any amount as the par value for its share but companies mostly choose It is the legal value per share that appears on the share certificates and is usually small (\$0.01, \$0.0001 etc) and is not connected to the market value of shares. Also, note that the Par value of a stock is quite different than the par value of the bond. In the case of par value (bond), this is the issued price of the bond. What is Par value of Share? Par value of shares also known as the stated value per share is the minimal shares value as decided by the company which is issuing such shares to the public and the companies then will not sell such type of shares to the public below the decided value. In other words it is the share nominal amount (\$1, \$0.1 or \$0.001) mentioned on the stock certificate at the time Definition of Par Value Par value is a per share amount that will appear on some stock certificates and in the corporation's articles of incorporation. (Some states may require a corporation to have a par value while others states do not require a par value.) (Par value can also refer to an amoun Towards the high end of the range, AT&T's par value is \$1 per common share; by contrast, Apple has a par value of \$0.00001 per share (that's a thousandth of a penny.) Par value of common stock Similarly, the value of the preferred stock is calculated by multiplying the number of preferred shares issued by the par value per share. Therefore, par value is more important to a company's

### In other words, if a founder purchases 5,000,000 shares of common stock at a par value of \$.00001 per share, that founder would pay \$50 to the company.

For example, a 2-for-1 stock split would double the number of shares outstanding and halve the par value per share. Existing shareholders would see their  What will probably happen to the par value per share of the stock? Effects of a stock split Assume that you own 3,600 shares of \$10 par value common stock and  Equity Analysis: What Is McDonald's Earnings Per Share (Basic) For The Fiscal Year Ended 12/31/2013? What Is The Return On Equity (ROE) For McDonald's For  Becker Company is a publicly held corporation whose \$1 par value stock is actively traded at \$20 per share. The company issued 1,000 shares of stock to acquire

### If Big City Dwellers issued 1,000 shares of its \$1 par value preferred stock for \$100 per share, the entry to record the sale would increase (debit) cash by \$100,000

Similarly, the value of the preferred stock is calculated by multiplying the number of preferred shares issued by the par value per share. Therefore, par value is more important to a company's The par value per share of common stock represents the minimum selling price of the stock established by the articles of incorporation. the minimum amount the stockholder will receive when the corporation is liquidated an arbitrary amount established in the articles of incorporation the amount of dividends per share to be received each year Par Value for Preferred Stock. The par value of a share of preferred stock is the amount upon which the associated dividend is calculated. Thus, if the par value of the stock is \$1,000 and the dividend is 5%, then the issuing entity must pay \$50 per year for as long as the preferred stock is outstanding. Par Value for Bonds What is Par value of Share? Par value of shares also known as the stated value per share is the minimal shares value as decided by the company which is issuing such shares to the public and the companies then will not sell such type of shares to the public below the decided value. In other words it is the share nominal amount (\$1, \$0.1 or \$0.001) mentioned on the stock certificate at the time The par value of a share of common stock is its stated face value. The issuer assigns a par value when a stock is originated; it is usually quite low--\$0.01 or even \$0. The par value is different from the current market price of the stock. In theory, if the market price of a stock fell below the par value, the company could be liable for the

## If the par value of the original 1,000 shares was \$10 a share, after a two-for-one split, the par value is decreased in half. When a split happens, the total par value of the stock remains the same. So before the split, the total par value of the stock was \$10,000--1,000 shares times \$10.

For example, if your small business issues stock with a par value of \$1 per share, you must retain reserves of at least \$1 of capital for every share issued. It is the legal value per share that appears on the share certificates and is usually small (\$0.01, \$0.0001 etc) and is not connected to the market value of shares. SIGNIFICANCE OF PAR VALUE. In current text books on corporation finance one sometimes runs across the assertion that the par value of stock is meant to  So, multiply the number of shares issued by the par value per share to calculate the par value of preferred stock. In this example, multiply 1,000 by \$1 to get \$1,000

For example, a 2-for-1 stock split would double the number of shares outstanding and halve the par value per share. Existing shareholders would see their  What will probably happen to the par value per share of the stock? Effects of a stock split Assume that you own 3,600 shares of \$10 par value common stock and  Equity Analysis: What Is McDonald's Earnings Per Share (Basic) For The Fiscal Year Ended 12/31/2013? What Is The Return On Equity (ROE) For McDonald's For  Becker Company is a publicly held corporation whose \$1 par value stock is actively traded at \$20 per share. The company issued 1,000 shares of stock to acquire  Both common stock and preferred stock have a par (stated) value. The par value is usually a small amount, such as \$0.01 per share. If you have 100 shares at  all stock, and all shares of a corporation must have the same value. 1 respect to every' issued share without par value"; or, in the alternative, the incorporation