1. What is a Stock Par Value Calculator?

Definition: This calculator determines the total par value of stock based on the assigned value per share and the number of shares.

Purpose: It helps investors, accountants, and business owners calculate the legal capital of a corporation's stock issuance.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Par Value — Total nominal value of the stock ($)
• Assigned Value — Nominal value per share ($/share)
• Shares — Number of shares issued (number)

Explanation: The assigned value per share is multiplied by the total number of shares to determine the aggregate par value.

3. Importance of Par Value Calculation

Details: Par value is crucial for accounting purposes, legal capital requirements, and determining the minimum price at which shares can be issued.

4. Using the Calculator

Tips: Enter the assigned value per share in dollars and the number of shares. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is par value in stocks?
A: Par value is the nominal or face value of a stock as stated in the corporate charter, not its market value.

Q2: Can par value be zero?
A: Yes, many companies issue no-par value stock, though some jurisdictions require a minimum par value.

Q3: How does par value differ from market value?
A: Par value is arbitrary and set by the company, while market value fluctuates based on supply and demand.

Q4: Why is par value important for accounting?
A: It determines the legal capital that must remain in the company and can't be distributed as dividends.

Q5: How do I choose an assigned value?
A: Typically a small amount (e.g., $0.01) unless specific legal requirements dictate otherwise.