#A90

Shares of common stock represent ownership of the company. The par value (face value)
of a share and the actual value of a share is not the same.
Lou and Shirley are planning to keep a par of $0.03 per share. The par value of a share is
often kept low. It helps them to avoid liability to stockholders and reduce the risk of
liquidity. Lou and Shirley are behaving professionally since they are disclosing all
information to the potential investors abiding by the federal regulations for the sale of
securities to the public.