If a Common Stock Has No Par Value

question 6

Multiple Choice

If a common stock has no par value:

• A)there is no way of determining the market value per share.
• B)the stock must have a stated value.
• C)there will not be any additional paid-in capital related to it.
• D)the stockholders do not have a preemptive right.

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Definitions:

Platykurtic

A distribution of values that is flat or low relative to the normal curve. Values in such a distribution have a wider range.

Neokurtic

Refers to a distribution in statistics that is characterized by a relatively peaked (less flat) curve representing frequency of data points.

Leptokurtic

A distribution of values that is peaked or high relative to the normal curve. Values in such a distribution have a narrower range.

Monokurtic

Describing a distribution that has kurtosis similar to that of a normal distribution, indicating the data has moderate outliers or none, and the peak of the distribution is neither flat nor too sharp.