Par. The face value. On the New York Stock Exchange if the face value of a stock is $100 it is at
par when it is selling at 100. It is above par when it is selling at a higher price, as 101; it is below
par when it is selling at a lower price, as 99. Half-stock (stock of the face value of $50) also is at
par when it is quoted at 100, which in this case means $50. The face value of a stock is divided
into 100 parts for quotation purposes, no matter what the face value may be, and each part is
called 1 per cent or 1 point (or a point). Therefore, when a half-stock is quoted at 101 it is 1 above
par, which means that the stock is worth $50.50 a share ; when it is quoted at 99 it is 1 below par,
which means that the stock is worth $49.50 a share. The same principle applies to quarter-stock
(stock of the face value of $25) and, in brief, to stock of any face value.
par when it is selling at 100. It is above par when it is selling at a higher price, as 101; it is below
par when it is selling at a lower price, as 99. Half-stock (stock of the face value of $50) also is at
par when it is quoted at 100, which in this case means $50. The face value of a stock is divided
into 100 parts for quotation purposes, no matter what the face value may be, and each part is
called 1 per cent or 1 point (or a point). Therefore, when a half-stock is quoted at 101 it is 1 above
par, which means that the stock is worth $50.50 a share ; when it is quoted at 99 it is 1 below par,
which means that the stock is worth $49.50 a share. The same principle applies to quarter-stock
(stock of the face value of $25) and, in brief, to stock of any face value.
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
| Copyright 2000 - 2010 by Dictionary of Accounting All Rights Reserved Accounting Resources Hunting Knives, Military Acronyms Training Gun Dog |