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The stated value of one share of stock is known as itsMultiple Choicedividend yield.capital in excess of par value.market value.par value.prime rate.

Question

The stated value of one share of stock is known as its

  • Multiple Choice
    • dividend yield.
    • capital in excess of par value.
    • market value.
    • par value.
    • prime rate.
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Solution

Identifying the Correct Answer

To determine the correct choice for "The stated value of one share of stock is known as its," we need to look at what each option represents.

  1. Dividend Yield: This measures how much a company pays out in dividends each year relative to its stock price. It is not the stated value of a share.

  2. Capital in Excess of Par Value: This refers to the amount received from investors over and above the par value of the stock. This is a measure relating to the sale of shares but not the stated value itself.

  3. Market Value: This is the price at which a stock is currently trading in the market. It can fluctuate widely and is not the stated value of a share.

  4. Par Value: This is the nominal or face value of a stock as stated in the corporate charter. It is the legal and minimum value of the shares as defined by the issuing company.

  5. Prime Rate: This is a reference interest rate used by banks and has no relation to the stated value of stocks.

Final Answer

The correct answer is par value.

This problem has been solved

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