Question 1
Another term for the stated value or face value of a stock is its
◦ book value.
◦ liquidation value.
◦ par value.
◦ proxy value.
Question 2
As a general rule, which one of the following statements concerning the various values of common stock is correct?
◦ Market values are usually below book values.
◦ Par values are usually above book values.
◦ Market values are usually below par values.
◦ Book values are usually below market values.