B. The value of a share of stock as shown on its face.
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to pronunciation.Legal Definition -
The value of an instrument or security as shown on its face; especially, the arbitrary dollar amount assigned to a stock share by the corporate charter, or the principal of a bond. -- Often shortened to par. --Also termed face amount; face value; nominal value; stated value.
Black's Law Dictionary® Eighth Edition © 2004
Scholarly Comment -
"At one time par value had considerable importance because it was widely viewed as the amount for which the shares would be issued: share with a par value of one hundred dollars could be subscribed for at one hundred dollars per share with confidence that all other identical shares would also be issued for $100. This practice, however, long ago fell into disuse. Today, par value serves only a minor function and is in no way an indication of the price at which the shares are issued, with this one exception: The one basic rule about setting the price for shares of common stock with par value is that the price must be equal to or greater than par value." Robert W. Hamilton, The Law of Corporations in a Nutshell 109 (3rd ed. 1991)