What Is Above Par?

The par value of a stock is also called "the par value of the stock" and "the par value". It is the nominal value of the stock company's issued par value. The amount of capital included.

Face value of stock

The par value of a stock is also called "the par value of the stock" and "the par value". It is the nominal value of the stock company's issued par value. The amount of capital included.

The par value of the stocks circulating in the Shanghai and Shenzhen stock exchanges in China is one yuan per share. (The only exception is Zijin Mining's stock par value of 0.1 yuan)

One of the functions of the par value of stocks is to indicate the proportion of stock subscribers in the investment of a joint stock company, as a basis for determining shareholders' rights.

The second function is to use the face value of the stock as a basis for issue pricing when the stock is first issued. Generally, the issue price of a stock is higher than its face value.

When the stock enters the circulation market, the par value of the stock has nothing to do with the price of the stock. The market price of a stock is sometimes higher than its face value and sometimes lower than its face price. However, no matter how the stock market price changes, its face value remains the same, although the actual value of each share may change a lot.

Chinese name

Face value of stock

Nature

Economic stock market securities

The par value of the stock, that is, the par value of the stock, was originally intended to ensure that the holder of the stock can recover the assets indicated on the parcel when the stock is withdrawn. With the development of stocks, stocks can no longer be returned after purchasing stocks, so the role of stock par value becomes:

I. The proportion of stock purchasers 'investment in a joint stock company shall be used as the basis for confirming shareholders' rights. If the total share capital of a listed company is 10 million yuan, holding one share means that the shares in the joint-stock company account for one ten millionth.

2. When issuing shares for the first time, use the par value of the shares as a basis for issue pricing. For example, if one share is split into ten shares, the price per share of the new shares will accordingly become one tenth of the previous one. At this time, it is 1 yuan to 10 shares 0.1 yuan on the par, which is also an equivalent conversion ,vice versa. With the development of the market, there are also denominated stocks.