What is the difference between a stock’s par value and its market valu

QUESTION

What is the difference between a stock’s par value and its market value?

What will be an ideal response?

ANSWER

Answer: The par value of a stock is set by the issuing corporation; it is an arbitrary figure. The market value of a stock is the price it is currently selling for. The market value of a stock changes constantly.
Explanation: Par value of a stock is an arbitrary figure set by the issuing corporation’s board of directors; another term for this is face value. Market value is the price at which a stock is currently selling on the primary or secondary securities markets.