The Stock Market

What is Par Value of a Share

Par value is a share’s minimum price. It limits how cheaply a firm can sell shares of its own stock. Since most firms do not wish to impose needless restrictions on their ability to raise money through stock offerings, they usually assign low par values. For example, it is common to see par values that are as low as $0.01 per share, or even zero cents per share.

The par value usually does not impact stock values, voting rights or market price.

Par Value

What is Par Value of a Share597What is Par Value of a Share