Golkor Inc (GKOR)

[frankb325]

A little DD will reveal the 1-3 shares is a .001 valuation

..i think when you talk about this .001 valuation you're talking about par value, correct??. i'm guessing you already know par value does not determine the true value of a stock and even stocks in the multiple dollar range have a par value of .001. a little explanation of par value is here

It used to be that the par value of common stock was equal to the amount invested (as with fixed-income securities). However, today most stocks are issued with either a very low par value (such as $0.01 per share) or no par value at all.

You might be asking yourself why a company would issue shares with no par value. Corporations do this because it helps them avoid a liability to stockholders should the stock price take a turn for the worse. For example, if a stock was trading at $5 per share and the par value on the stock was $10, theoretically, the company would have a $5-per-share liability.

Par value has no relation to the market value of a stock. A no par value stock can still trade for tens or hundreds of dollars - it all depends on what the market feels the company is worth.


Read more: http://www.investopedia.com/ask/answers/106.asp#ixzz26Z76xcX7