Fredo Inc s common stock has a par value of $1 and a current market value of $15 Explain why these amounts are different ...

Par value is a legal amount per share often set at an arbitrarily selected amount which usua ...

Fredo Inc.s common stock has a par value of $1 and a current market value of $15.

Question:

Fredo Inc.’s has a of $1 and a current market value of $15. Explain why these amounts are different.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...