The Par Value of a Company's Stock

question 70

Multiple Choice

The par value of a company's stock

• A)dictates the initial price of the stock.
• B)has little connection to the market value of the stock.
• C)is generally greater than market value.
• D)may be revised each time a company issues more shares of stock.

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Definitions:

Interest Rate

The percentage of the principal charged by a lender to a borrower for the use of assets.

Expected Rate

The anticipated return or yield on an investment or economic variable over a period.

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Income Levels

Categories of annual or monthly earnings that individuals or households fall into based on the amount of money they make.