Accounting help??

which is better investment--common stock with a per value of $5 per share or a common stock with a par balue of $20 per share?

Not enough information.

You can buy more shares if the shares are priced at $5 per share, however at $20 per share the company may have a more sound financial standing and a higher dividend.

actually, par value has no effect when determining investment strategy. Par Value is simply an accounting term developed by the corporate charter. Some companies charters state that dividends can't be declared if the par value were to go below a fixed number ie $1. So the par value is only effected when a company issues stock splits and stock dividends.

The question cannot be answered. The par value of the stock has little relation to its market value. Par value is an arbitrary amount assigned to shares of stock. To decide which is the better investment, you would want to evaluate much more than par value. The $20 par stock may have been issued for $25 per share. The $5 par stock could have been issued for $50 per share. That still does not tell you which is the better investment. You would want to evaluate the company's earnings, operations, asset and debt structure, and many other aspects to decide which is the better investment.

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