One thought on “What is the relationship between the face value of the shares and the value of the company?

  1. Arti says:

    A corporation can’t be a corporation without at least one share of stock. So you must have at least one shareholder, and one share of stock. You can have (authorize) as many shares of stock as you want, however, this may increase your filing fees in a few cases. A shareholders’ meeting is ussually required to authorize an increase of the shares since their ownership of the company will be affected due to this change. A shareholders’ meeting is ussually requi This valuation is based on several factors, including the sales or fees earned, fair market value of your assets. You then would make the decision to either sell the assets of the company or the stock of the company. The customer list and the goodwill of the company. There is no need to do that. The person who performs the valuation will inform you of approximate worth of your company. The par value is usually a figure that is set depending on the state and can be used by a state to set the renewal fees or the state taxes. All companies, even the publicly traded ones have a par value on their shares which is much lower than the current valuation of the stock.

Leave a Reply

Your email address will not be published.