Par value stock
Par value stock is capital stock to which the charter has assigned a value per share. Years ago, par value determined the legal capital per share that a company must retain in the business for the protection of corporate creditors; that amount was not available for withdrawal by stockholders. Thus, in the past, most states required the corporation to sell its shares at a par or above.
Category: Accounting & Auditing
Previous: ← Authorized stock
Next: No-par value stock →
More from this Section
- Average collection period
Average collection period means the average amount of time that a receivable is outstanding; ... - Notes receivables
Notes receivables are claims for which formal instruments of credit are issued as proof ... - Investment center
Investment center is a responsibility center that incurs costs (and expenses), generates ... - Activity-based costing (ABC)
Activity-based costing (ABC) is a method of allocating overhead based on each product’s ... - Just-in-time (JIT)
Just-in-time (JIT) refers an inventory control system that keeps the inventory of parts ...