RE: Par value (stock) – An arbitrary dollar value that a company assigns to its shares. Par value has no economic significance. The legal significance of par value is, roughly, that if shares are issued below par value, the holders of those shares might be assessed the difference among par value and the problem price. Most stock certificates state that the shares are fully paid and non assessable to indicate that holders are not on the hook for extra contributions because the shares had been issued at a price greater than par value. Businesses usually assign a extremely low par value to typical stock.
I am planning to purchase some penny stock which is listed on Pink sheet, however there is something I am not extremely certain. According to above statement, if I purchase 500,000 for example AA stock at $.01 which is below the par, am I liable for the difference among par value and the problem price? Could you please assist me with this question?
