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What is the par value of common stock?

The par value is the value of one share of common stock. The par value is set by the company’s organization or charter documents. The par value does not indicate the market value of the stock. The par value is fixed and does not fluctuate based on the market price of the stock.

As you can see in the visual below, the par value is set by the company and that is what is required to common stock. The difference between the par value and market price is considered additional paid-in capital (APIC).


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