The Par Value of Common Stock Represents

question 2

Multiple Choice

The par value of common stock represents:

• A)The amount received when the stock was issued.
• B)The liquidation value of a share.
• C)The market value of a share of stock.
• D)The legal capital per share of stock assigned when the corporation was first established.

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Definitions:

Unit Retail Price

The price at which a single unit of a product is sold to consumers in the retail market.

Retail Price

The total cost at which a product or service is sold to the end consumer, inclusive of all markups.

US Dollar

The official currency of the United States, widely used as a standard of exchange in international markets.

Euro

The official currency of nineteen of the twenty-seven European Union countries, known collectively as the Eurozone.