Show some calculations to appreciate the influence of the number of shares on the quoted selling price assume a company with a capital of which stock it is proposed to sell at 25 cents on the dollar realizing altogether by dividing the capital into twelve million shares the par value of a share would be 4 16 1 6 cents and the selling price 1 cent per share if shares par value 33 13 1 3 cents selling price 8 cents if shares par value 1 selling price 25 cents if shares par value 25 selling pries price 6 if 1000 shares par value selling price in each case multiplying the number of shares by the selling price gives or at 25 cents on the dollar lar no shares par value selling price 6 01 3 08 24 2500 1000 in most cases a property is paid tor for in stock the balance is treasury stock and tile the proceeds are used for development purposes purpose 3 in a new company an investor should always buy treasury stock issued by the company and thus put his money into the mine and not into the pocket of an individual |