Series 82: Value At Issuance

Value at Issuance

Historically, par value was the price at which a company initially sold its shares. The concept of par value was much more important in the unregulated equity markets of the past than in the regulated markets of today. Today companies may set par values at $.001 per share or even lower. Some states allow companies to issue shares with a zero par value. In general, today par value is an accounting artifact with little relevance for the investor and v