Must Par Value Be Legally Set at $0.01 When Filing

Must Par Value Be Legally Set at $0.01 When Filing

Par value is an open interpretation of what a stock's value should be. This is usually set at a minimal amount, such as $0.01 per share, since some state laws still require that a company cannot sell shares below the par value (i.e. $0.0000001). By setting the par value at the lowest possible unit of currency for the country the entity was founded under, a company avoids any trouble with future stock sales if its shares begin to sell in the penny stock range.

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