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If you are incorporating a private company, you have to follow the regulations of your state. That means Articles of Incorporation and in that you will state the par value of the shares. You will have to capitalize the corporation and decide how many shares you want. For example. If you start with a capitalization of $10,000 and you set up 1,000, each share will be worth $10. That can be changed later. Of course this does not apply to publicly traded company's that follow an entirely different set of rules.

If you are asking this question, you may not have the skills and ability to do the set-up work. I suggest a lawyer (no online) that should be able to do this for less than $1,000. He will also make sure you don't forget to file with the correct authorities.

2006-08-30 11:11:03 · answer #1 · answered by united9198 7 · 0 0

You don't determine the value of stock. The market does - by how many people are buying and selling at a time - the market fluctuates the value of the stock.

2006-08-29 05:34:20 · answer #2 · answered by Anonymous · 0 2

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