How to Determine the Par Value of Stock

Finding the Par Value of Stock

One thing public companies can do to raise capital (money) is to issue stock. When they sell the stock, they make money from the sale. The amount of money they make is the difference between what they sell the stock for and the par value of the stock (also referred to as "additional paid-in capital"). The par value is the original or face value of the stock given to it before it is issued. Many stocks are issued with either a very low par value (such as $.01 per share) or with no par value at all. The best way to determine the par value of stock is by looking at the 10K.

Instructions

1. Obtain the 10K for the company you need to determine par value for. The 10K is a legal document required of all public companies by the Securities and Exchange Commission (SEC). It usually can be found on the company's website through Investor Relations (SEC Reports/Documents). You can also obtain one from your broker or possibly download one from an investment research site.

2. Look on the first page of the 10K for a title referred to as "Title of each class." This is on the boilerplate document created for those companies that must issue a 10K.

3. Determine the par value of the stock, which will be listed under "Title of each of class" (if issued). It is commonly listed as follows: "Common stock, par value $.06 per share."

References

• Investopedia: Why Would a Stock Have No Par Value?
• Investopedia: Par Value
• Investopedia: Reading the Balance Sheet