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The price printed on the face of a stock certificate represents the:

a. par value.
b. book value.
c. market value.
d. capital value.

User Benelgiac
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1 Answer

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Final answer:

The price printed on the face of a stock certificate denotes its par value, which is different from its market value or book value. The answer is option A.

Step-by-step explanation:

The price printed on the face of a stock certificate represents the par value. The par value is nominal and does not necessarily reflect the market value, which is the current trading price, or the book value, which is an accounting measure.

Unlike par value, the market value of a stock or bond is influenced by the present discounted value (PDV), which is the current worth of expected future cash flows, discounted at an appropriate rate to reflect their value in today's terms. For bonds, the PDV also considers the face value and interest payments.

User Rick Davin
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