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Common Stock Investment Question-Par Values

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Which is the better investment - common stock with a par value of $5 per share or common stock with a par value of $20 per share?

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Which is the better investment - common stock with a par value of $5 per share or common stock with a par value of $20 per share is determined.

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Actually, there is no way to answer this question based upon the facts given. Par value is a nominal value given to a corporation's shares for legal and taxation purposes. Some states tax corporations based upon the par values of their shares; in fact, it is not unusual to see "no par value" shares in states which tax the total capital of corporations rather than their total par values. In other instances, corporations assign a par value of $1 per share for the sake of convenience (since a par value will generally appear on stock certificates). In the current case, we really know ...

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