Which of the following statements are true? Multiple select question. Since the par value represents the legal capital, it constitutes the most important characteristic of stock. Par value represents the purchase price of stock offered to executives and other premium investors. Many states allow corporations to issue no-par stock. To minimize the amount of assets that owners must maintain in the business,many corporations issue stock with very low par values.
Which of the following statements are true?
Multiple select question.
Since the par value represents the legal capital, it constitutes the most important characteristic of stock.
Par value represents the purchase price of stock offered to executives and other premium investors.
Many states allow corporations to issue no-par stock.
To minimize the amount of assets that owners must maintain in the business,many corporations issue stock with very low par values.
Stock is defined as the security which represents the ownership of the fraction of the corporation. This entitles the stock owner to the proportion of the assets of corporation as well as profits equal to how much stock they own.
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