The Amount Paid for Stock in Excess of Par Value

question 40

Short Answer

The amount paid for stock in excess of par value is called a(n)--------- .

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Definitions:

Nonnegotiable Document

A legal document that cannot be transferred or assigned to another party through endorsement or delivery.

Good-faith Purchaser

An individual who buys property without knowledge of any existing claims or faults of the property, thereby gaining full legal rights.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its true economic worth.

Voidable

A legal status referring to a transaction or contract that may be rescinded or nullified at the discretion of one party due to certain defects or circumstances.