A stock's par value is the monetary amount assigned to the share of stock.
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The issuance of stock. The accumulation of profits and/or losses (Retained Earnings). The payment of dividends. The re-purchase of your own stock (Treasury Stock).
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In any Company there are Internal Factors affecting the company and External Factors affecting the company. Internal Factors are Management Descisions on what sort of business the company is in, quality of services or stock sold by the company. External Factors affecting the company include the Global Financial Crisis, government policies, and central bank interest rates.
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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.
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