Par Value Stock in United States
Practical Information
Note: Some of this information was last updated in 1982
Stock with face or nominal value. No necessary relation exists between the par value and the real value of the stock. The par value is an amount predetermined by the corporation and remains the same regardless of how many times the share of stock changes hands or how much is paid for it. The real or actual value of stock is the price it can command in the market. Par value is a fixed amount. Emphasis is placed on the distinction because too often the concepts of par value and actual value are confused. See nopar stock (in U.S. law).
What is Par Value Stock?
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