A stock's par value is the monetary amount assigned to the share of stock.
The basic meaning of par stock is the amount of stock a business or individual should keep on hand at all times. If your stock amount falls below this par, you should purchase more to keep it at that number.
Par is the value stated on the stock certificate as stated in the articles of incorporation and is many times $.01 or $1.00.
Issuing Par Value Common Stock for Cash (assume par value is $1) dr. Cash $1.00 cr. Common Stock $1.00 to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5 cr. Common Stock $1 Paid-in Capital in excess of par $4 to record issuance of 1 share of common stock in excess of par.
concept of per stock in hotel industry
average level
all stock maintain in store
5
Par value stock
No one set par at, nor is 72 always par. There are 18 holes on a golf course, the holes are of pars 3,4 and 5, any combination of these is acceptable and the total is par. Par can range from 69-73.
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Shares of stock that are issued at a value in excess of a company's actual assets are known as watered stock. The term arose many decades ago when a par value was assigned to shares of stock by the board of directors. The par value was correlated by many investors to the actual asset value per share of a company since companies could not sell additional stock below the stated or par value. Dishonest stock promoters would deceptively assign a high par value in order to sell overvalued or watered shares to investors. Due to investor confusion and misuse by shady stock issuers legislation was passed to allow stock to be issued at no par value. Once used as a metric of stock valuation, the term par value has little meaning for present day investors.