Which of the Following Describes the Par Value of Stock

question 103

Multiple Choice

Which of the following describes the par value of stock?

• A) Par value is the current selling price of stock.
• B) Par value is the highest price for which a share can sell.
• C) Par value is the price paid if the corporation purchases its own stock back.
• D) Par value is a nominal, or minimal, amount assigned to shares of stock by the corporation.

---

Definitions:

Equilibrium Quantity

The amount of goods or services that are bought and sold at the equilibrium price, where market demand meets market supply.

Consumer Surplus

The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.