Like money, every stock certificate has a par, or face, value. A share with a par value of one is a basic stock, and a share with a value of five is equal to five basic stocks,
just as a $5 bill is equal to five $1 bills.
The equality of shares applies to a company’s ownership, not to its voting rights (this will be discussed later).
Most companies traded on a stock exchange have stocks with a par value of 1.
however, some companies have more than one type of stock.
Related posts:
- What Is A Stock Exchange?
- What is Stock exchange
- Issuing Stocks
- What are the securities traded in the stock market?
- What is the Stock Market?
