What term refers to the value assigned to a share of stock and is printed on the stock certificate?

Master the BPA Advanced Accounting Test with our comprehensive quizzes. Prepare with flashcards and multiple-choice questions, each packed with hints and explanations. Boost your exam readiness and confidence now!

The correct term that refers to the value assigned to a share of stock and printed on the stock certificate is par value. Par value is a nominal value that represents the minimum price at which shares can be issued, as stipulated in the corporate charter. It serves as a legal capital requirement for the company, ensuring that a company must maintain a minimum amount of capital in relation to its par value shares.

While market value represents the price at which shares are currently trading in the market, book value pertains to the value of a company's assets minus its liabilities, giving a snapshot of the company's equity. Intrinsic value reflects the perceived or calculated value of a company or asset based on fundamental analysis, which differs from the fixed par value that is established at the time of a company's incorporation. Therefore, the term associated directly with the value printed on a stock certificate is par value.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy