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What is a Full Stock?

H. Bliss
H. Bliss

Full stock is a name for stock with a par value of $100 US Dollars (USD). Par value is a measurement of the estimated face value of purchased stock. Stock is one variety of securities, sold in shares, that represents pieces of ownership of a publicly traded company. Par value often outlines the minimum price for the security. Full stock can be compared to half stock, which is stock with a par value of $50 USD, and no-par value stock, which is stock that is not assigned a par value.

Because the par value, the face value at which a stock is issued, has no real effect on the market value of the stock, most stocks are issued with no face value and no par value. In some areas where par values for stock are required by law, the par value is usually the lowest amount allowed, often $0.01 USD. When no-par value stock is sold and becomes purchased stock, the accounting department at the issuing company sets a par value, which then defines whether a stock qualifies as half-stock or full-stock. When the par value of a stock is set at full stock, it essentially means that the full stock cannot be sold for less than $100 USD per share.

Man climbing a rope
Man climbing a rope

Market value is the going price on the market for a stock. Par value is not the same as market value. Market value is determined using a variety of factors, including equity in the company and its future potential for growth. With stocks, the market value may be different prices for those who wish to buy and those who wish to sell the same type of stock.

Shares of stock are sold on a number of stock markets, the highest-volume of which are the New York Stock Exchange® (NYSE®), NYSE Amex Equities® (Amex®) and The NASDAQ® Stock Market. Other countries also have multitudinous stock markets or trading national and international stock. Though Amex®, NYSE® and NASDAQ® stocks can be traded electronically, Amex® and NYSE® have physical stock exchange locations, while NASDAQ® is an all-electronic stock exchange. In exchange for investing in stock, the stock owners, also known as stockholders or shareholders, receive payments called dividends that represent the shareholder's portion of the company's profits.

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