Which of the Following Is Called Capital in Excess of Par

question 85

Multiple Choice

Which of the following is called capital in excess of par?

• A)The dollar amount printed on the stock certificate
• B)The difference between a stock's par value and its offering price
• C)The price at which the common stock is currently trading
• D)The difference between a stock's par value and its estimated price
• E)The potential price of the common stock

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Definitions:

Loss On Sale

A financial term representing the situation where the selling price of an asset is less than its purchase price.

Common Shares

Equity securities that represent ownership in a company, giving shareholders voting rights and a share in the company’s profits through dividends.

Par Value

The stated value of a stock or bond as designated by the issuer.

Privately Held Corporation

A corporation owned by private investors, its shares are not traded publicly on stock exchanges.