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Alona [7]
3 years ago
5

The par value of common stock represents the___________.

Business
1 answer:
Serhud [2]3 years ago
6 0

Answer: Option D

Explanation: A share's par value is the value specified in the corporate charter below which shares of that class can not be sold on the initial offer; the issuing company agrees not to sell additional shares below par value, so shareholders can be assured that no one else will obtain a more desirable share price.

The nominal value of the stock  of a company is an unreasonable value assigned for the purposes of the reporting in the balance sheet when the company issues shares.

Hence from the above we can conclude that the correct option is D.

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The answer and procedures of the exercise are attached in the following archives.

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