Par Value of Shares: What Is It and How to Set It?

Par value of shares, also known as the stated value per share, is the minimum value per share as decided by the company issuing such shares to the public. The companies then will not sell such shares to the public below the decided value. In short, it becomes a legal obligation for firms to not sell those shares at anything less than this par price.

The par value of stock has no relation to market value and, as a concept, is somewhat archaic.