Increases in the Value of Existing Assets Are Called

question 55

Multiple Choice

Increases in the value of existing assets are called:

• A) saving.
• B) investment.
• C) capital gains.
• D) capital losses.

---

Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, not necessarily reflecting its market value.

Legal Capital

Minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Stated Value

A value assigned to no-par stock by the company's board of directors.

No-Par Value

Refers to shares of stock that have not been assigned a specific par value by the issuing company.