The par value of the common stock of a large listed corporation:
A. Tends to establish a ceiling for the market price of the stock.
B. Tends to establish a floor for the market price of the stock.
C. Represents legal capital and is not related to the market price of the stock.
D. Is increased by net income and decreased by dividends.
Answer:C
The par value of the common stock of a large listed corporation:
A. Tends to establish a ceiling for the market price of the stock. B. Tends to establish a floor for the market price of the stock. C. Represents legal capital and is not related to the market price of the stock. D. Is increased by net income and decreased by dividends.