Par Value

Par Value is a fixed per share value that is printed on some stock certificates.  Par value is the maximum responsibility that a stockholder bears in the event the company is dissolved.  Par value then becomes the nominal value or minimum value at which a share of stock can be issued.

The par value of a stock has nothing to do with the market value of a stock.  Most stocks carrying a par value today usually carry values in the $1 - $10.  The par value stock issued by a company can be found in the owner's equity section of the balance sheet.