## Only the par value of the common stock

Since the par value of its common stock is only \$0.000006 per share, the total is less than \$1 million (which is the units it reports in) so it shows as zero on the  26 Mar 2019 Par value is the stock price stated in a corporation's charter. If the price is higher than the par value, the issuing entity still only has to base its  Even so, many stocks still have a "face value," more commonly called the par If the stock has a par value, the "common stock" equity account will show only the

Many common stocks issued today do not have par values; those that do (usually only in jurisdictions where par values are required by law) have extremely low par values (often the smallest unit of currency in circulation), for example a penny (USD\$0.01) par value on a stock issued at USD\$25.00/share. Most jurisdictions do not allow a company to issue stock below par value. Par value for a share refers to the stock value stated in the corporate charter. Shares usually have no par value or very low par value, such as one cent per share. In the case of equity, par value has very little relation to the shares' market price. Par value is also known as nominal value or face value. (1). If company has issued only common stock and no preferred stock: The calculation of book value is very simple if company has issued only common stock. The net assets i.e, total assets less total liabilities are divided by the number of shares of common stock outstanding for the period. When a corporation completes a 2-for-1 stock split, a. only the par value per share is decreased. b. only the ownership interest of current stockholders is decreased. c. only the market price per share of the stock is decreased. d. both market price per share and par value per share are decreased.

## Issuing Common Stock with a Par Value in Exchange for Cash because gains and losses only result from the disposition of economic resources (assets).

That is most common, not a rule, so you will see \$10, \$100 but it is an accounting fact only. This applies to COMMON stock. On Preferred shares, forget the above. Issuing Common Stock with a Par Value in Exchange for Cash because gains and losses only result from the disposition of economic resources (assets). Capital Stock, \$80,000 (\$80 par) • Paid-In Capital in Excess of Par Value— Common, \$200,000 • and Retained Earnings, \$400,000 Assuming that there is only  Chapter 7.3® - Explanation of Common & Preferred Shares - Par Value & No Par The common shareholders are entitled to dividends only as declared, and  Par value sets only your bottom limit, but the board of directors may set the price of stock at any amount above par. Let's say your par value is \$.01 but the board  Since the market value of the stock has virtually nothing to do with par value, investors may buy the stock on the open market for considerably less than \$50. If all 1,000 shares are purchased below par, say for \$30, the company will generate only \$30,000 in equity. The par value of a share of common stock is its stated face value. The issuer assigns a par value when a stock is originated; it is usually quite low--\$0.01 or even \$0. The par value is different from the current market price of the stock. In theory, if the market price of a stock fell below the par value,

### Issuing Common Stock with a Par Value in Exchange for Cash because gains and losses only result from the disposition of economic resources (assets).

However, when you find the balance sheet on a secondary website like NASDAQ or Market Watch, you will generally only find the total value of stock at par value. For example, on NASDAQ, Amazon’s December 31, 2017 balance sheet only lists the “Common Stock Par Value” at \$5 million which means that the value of all common stock currently issued is \$5 million.

### When a corporation completes a 2-for-1 stock split, a. only the par value per share is decreased. b. only the ownership interest of current stockholders is decreased. c. only the market price per share of the stock is decreased. d. both market price per share and par value per share are decreased.

The last step is imply adding the par value of preferred stock and the par value of common stock to calculate the par value of total stock. Continuing the example, add \$1,000 and \$10,000 to get \$11,000 in par value of stock.

## This refers to the par value (or stated value) of the stock, which has nothing at all to do with the market value of the stock. Looking at Target's balance sheet, we see that the value of common stock is listed as just \$53 million while the company's market capitalization is approximately \$44.5 billion.

Par value is best considered as the legal capital of common stock and is a part of a company's contributed capital. For example, imagine that your company issues a common stock share for \$25, and the par value of the stock is \$0.10. You would credit your Common Stock account for \$0.10 and your contributed capital account for \$24.90. Corporations can issue no-par stocks if they are not legally required to issue common stock with a par value. No-par stocks do not require a stated value. The However, when you find the balance sheet on a secondary website like NASDAQ or Market Watch, you will generally only find the total value of stock at par value. For example, on NASDAQ, Amazon’s December 31, 2017 balance sheet only lists the “Common Stock Par Value” at \$5 million which means that the value of all common stock currently issued is \$5 million. The last step is imply adding the par value of preferred stock and the par value of common stock to calculate the par value of total stock. Continuing the example, add \$1,000 and \$10,000 to get \$11,000 in par value of stock.

That is most common, not a rule, so you will see \$10, \$100 but it is an accounting fact only. This applies to COMMON stock. On Preferred shares, forget the above. Issuing Common Stock with a Par Value in Exchange for Cash because gains and losses only result from the disposition of economic resources (assets). Capital Stock, \$80,000 (\$80 par) • Paid-In Capital in Excess of Par Value— Common, \$200,000 • and Retained Earnings, \$400,000 Assuming that there is only  Chapter 7.3® - Explanation of Common & Preferred Shares - Par Value & No Par The common shareholders are entitled to dividends only as declared, and  Par value sets only your bottom limit, but the board of directors may set the price of stock at any amount above par. Let's say your par value is \$.01 but the board  Since the market value of the stock has virtually nothing to do with par value, investors may buy the stock on the open market for considerably less than \$50. If all 1,000 shares are purchased below par, say for \$30, the company will generate only \$30,000 in equity.