Examlex
Briefly explain why the histogram below is misleading.
Par Value
A nominal or face value assigned to a security or stock, which may bear no relation to its market value.
Paid-In Capital
The sum of funds that a corporation has obtained from investors in return for stock shares.
Legal Capital
The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.
Common Stock
Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.
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