Similar to having a value for money, every stock certificate also has a par, or face, value.

A share which has a par value of 1 is a basic stock, and a share which has a value of 5 is equal to 5 basic stocks, just like the $5 currency bill is equal to five $1 currency bills.

The value of the $10 currency bills = The value of ten $1 currency bills.

The equality of shares is applicable to the company’s ownership, and this is not related to the voting rights (this will be looked upon later in the course).

Several companies which trade on a stock exchange do have stocks with a par value of 1; however, there are companies which provide with more than one kind of stock, where there can be 3 shares for one dollar invested in one product and 2 shares for one dollar invested in another product of the same company.