When it comes to equities, it’s the market value that counts, not the par value. When most stocks are issued, they are given a par value. The par value assigned in modern times is a little sum, such as one cent. This eliminates any legal ramifications if the stock falls below its par value. Depending on state regulations, certain stocks are issued with no par value.
The stock market determines a stock’s true worth, which fluctuates throughout the trading day as shares are purchased and sold.
Market Value is a term used when valuating a “Public Company” (i.e., a Company that has stock traded on a Stock Exchange). The ‘Market Value’ is simply the number of shares of stock outstanding (or trading on a stock exchange), multiplied by the Company’s stock price.
For example: ABC Company has 1,000,0000 shares x today’s stock price of $32.00 per share = Market Value of $32,000,000.