Distinguish Between a Par-Value Share and a Non-Par-Value Share

question 85

Essay

Distinguish between a par-value share and a non-par-value share.

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Definitions:

Additional Financing

The process of obtaining extra funds for business activities, which could be through loans, equity, or other forms of financing.

Pay Dividend

The action by a company to distribute a portion of its earnings to its shareholders, usually in the form of cash or additional stock.

Return on Equity

A financial ratio that measures the profitability of a business in relation to shareholders' equity.

Profit Margin

A financial ratio that shows the percentage of revenue remaining after all operating expenses, interest, taxes, and dividends have been deducted.