Tyler bought 100 stocks of a company that had a positive growth potential. he bought them in the secondary market for $15. however, the stock certificate shows the value to be $10. what does this amount represent? the value of $10 showing on the stock certificate is the value.

Question

Gunnar Hudson

Social Studies

19 December, 13:39

Tyler bought 100 stocks of a company that had a positive growth potential. he bought them in the secondary market for $15. however, the stock certificate shows the value to be $10. what does this amount represent? the value of $10 showing on the stock certificate is the value.

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Johnny Mcpherson · Answer 1

Given:

100 stocks of a company bought from secondary market

secondary market price - 15

stock certificate value shows - 10

The value of 10 on the stock certificate is the actual value of the stock. It is known as the par value.

Since you bought it for 15 per share, the seller has an income of 5 per share.

When you sell it at lower than 15 per share, you will experience a loss. When you sell it at a price higher than 15 per share, you will have a gain.