QUOTE(kb2005 @ May 19 2011, 09:53 AM)
I just curious why the par value so low and this make the IPO price of RM2.90 very expensive. Balls i sure have. Whether i want to join or not, then i need to think.
actually why so obsess about par value?? valuation of stocks is derived from earnings, sum part value, div, etc and not par value....why so concern??
Par value is merely a reference for event as follows:
1) when a company declared dividend by way of say 10% which means = 10% of par value.....but it does not matter much as the company can choose to declare in say 10 cents , 20 cents, etc instead of percentage of par....
2) par value is only use as reference when determining the rights issues price as company are not allow to set price below par....
"correct me if i am wrong"....
This post has been edited by noswear: May 19 2011, 11:19 AM
May 19 2011, 11:18 AM

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