Puerto Rico Amendment of common stock par value

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US-CC-3-215A
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This sample form, a detailed Amendment of Common Stock Par Value document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

A par value for a stock is its per-share value assigned by the company that issues it and is often set at a very low amount such as one cent. A no-par stock is issued without any designated minimum value.

Start by identifying the total value of the authorized shares. This is typically mentioned in the company's charter or articles of incorporation. The value can be calculated by multiplying the number of authorized shares by their individual par values.

?Par value? or ?face value? is the lowest price for which a company can sell stock. ?Fair Market Value? is the notional value of stock on the market at the time of sale. A reasonable par value for an early stage company can be as low as $0.00001. Setting a par value low can avoid tax liabilities later.

The par value of shares, or the stated value per share, is the lowest legal price for which a company sells its shares. Par value is required for a bond or a fixed-income instrument and shows its maturity value and the dollar value of the coupon, or interest, payments due to the bondholder.

The par value of shares, or the stated value per share, is the lowest legal price for which a company sells its shares. Par value is required for a bond or a fixed-income instrument and shows its maturity value and the dollar value of the coupon, or interest, payments due to the bondholder.

A par value of $0.01 for common stocks in finance means that the declared value of the common stock in the articles of incorporation is $0.01. The other term for par value is face value because it is the amount on the face of the corporation's charter or the stock certificate.

If you already have par value and you want to raise or lower it, things are a bit more complicated. Typically, you can't just make an amendment saying you now have a new par value. Instead, the most common way that corporations change their par value is with a stock split (or reverse stock split).

Par value should not be confused with other common stock values ? such as ?book value? and ?fair market value.? Thus, if a corporation's common stock has a par value of $0.01 per share, the corporation would be in violation of its charter if it sold any of its common stock for less than $0.01 per share.

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Puerto Rico Amendment of common stock par value