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What is par value? (什么是票面价值?)

If we take par value and multiply it with number of shares, it will become the company’s minimum market capitalization.

Since some companies are forced to put a value to its par value, most of the companies put it as low as RM0.01, so that they will not be restricted with such par value.

Par value can also be acted as the dividend payout. For example in 2016, PBBANK issue a 32% dividend, which means the dividend will be RM0.32 since its par value is RM1.00 and multiplied by 32% will resulted in RM0.32.

However, there are also companies that have no par value. But in reality, having par value or not for a stock means little to nothing. Par value is only important for bond, so if you are investing in bond, then par value shall be one of the consideration.

In short, par value is not that important for stock investing, but this is merely acting as information sharing, to increase investors’ knowledge.






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