The Par Value of the Common Stock of a Large

question 32

Multiple Choice

The par value of the common stock of a large listed corporation:

• A)Tends to establish a ceiling for the market price of the stock.
• B)Tends to establish a floor for the market price of the stock.
• C)Represents legal capital and is not related to the market price of the stock.
• D)Is increased by net income and decreased by dividends.

---

Definitions:

Farm Prices

refer to the prices of agricultural products at the farm level, influenced by factors such as supply, demand, and agricultural policies.

Farm Income

The earnings obtained from agricultural activities and operations, including crop sales, livestock sales, and government subsidies.

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at a given price.