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Questions and Answers
Which term refers to the amount of capital invested by shareholders both at the inception and after in a corporation?
Which term refers to the amount of capital invested by shareholders both at the inception and after in a corporation?
- Paid-in capital (correct)
- Common stock at par-value
- Stock certificates
- Paid-in capital excess of par-value
What is the difference between the amount of money the stock actually sold for and its par-value called?
What is the difference between the amount of money the stock actually sold for and its par-value called?
- Paid-in capital excess of par-value (correct)
- Stock certificates
- Common stock at par-value
- Paid-in capital
What is the term used to describe the stock certificates that have an amount of US dollars printed on them?
What is the term used to describe the stock certificates that have an amount of US dollars printed on them?
- Paid-in capital excess of par-value
- Common stock at par-value (correct)
- Stock certificates
- Paid-in capital
Do most companies sell stock at an amount higher or lower than their par-value?
Do most companies sell stock at an amount higher or lower than their par-value?
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Study Notes
Stock and Shareholders
- The term that refers to the amount of capital invested by shareholders both at the inception and after in a corporation is paid-in capital.
Par-Value and Selling Price
- The difference between the amount of money the stock actually sold for and its par-value is called premium.
- Stock certificates with a specified amount of US dollars printed on them are known as par-value stocks.
- Most companies sell stock at an amount higher than their par-value.
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