Financial Rporting

chandniwadhwani92
Finance Junkie
Posts: 166
Joined: Mon Oct 06, 2014 7:36 am

Financial Rporting

Postby chandniwadhwani92 » Sun Nov 16, 2014 1:33 pm

SHAREHOLDER'S equity
PAR VALUE OF COMMON STOCK IS STATED OR LEGAL VALUE.
IT HAS NO RELATION WITH FACE VALUE.
SOMETIMES COMPANIES ISSUE SHARES WITH NO PAR VALUE

Q-1 Difference between par value and face value?
Q-2 Why companies issues shares with no par value?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Financial Rporting

Postby edupristine » Wed Nov 19, 2014 8:23 am

1) There is no difference between these two.
2) There is no par value on stock, because company will not pay any specific amount to stockholders and at the time of liquidation the stockholders will get the amount which is left after paying financial liability.


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