Par Value

Accounting Dictionary

Par Value

The state requires companies to sell their stock for a minimum amount of money called par value. When a company incorporates in a state in the United States that state will set a minimum sale price for company stock called a par value.

If the assigned par value is $5.00, the company can sell its stock for a lot more than $5.00 per share if it wishes, but it cannot sell it for less.

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