Alexandoy
VIP Contributor
Let me share this short lesson on the shares of stocks in the stock market that maybe crypto investors can learn something. The par value is the starting price of the stock. Upon registration the corporation declares the amount of capitalization and the number of shares of stocks. For example the capitalization is $100,000 and the owners decided to have 100,000 shares for simplicity of computation therefore the par value of the shares of stocks is $1 per share.
When it enters the stock exchange the selling price is usually higher than the par value because the company had been earning already like a year or longer in operation. One bank that has a par value of 10 pesos had an IPO (initial public offering) of 20 pesos per share as price in the stock exchange. Let it be clear that the par value of the stock doesn’t change. What is changing is only the market price.
When it enters the stock exchange the selling price is usually higher than the par value because the company had been earning already like a year or longer in operation. One bank that has a par value of 10 pesos had an IPO (initial public offering) of 20 pesos per share as price in the stock exchange. Let it be clear that the par value of the stock doesn’t change. What is changing is only the market price.
