Gigi Liken and Ron Bobo are organizing Gold Unlimited Inc. to undertake a high-risk gold-mining venture in Canada. Gigi and Ron tentatively plan to request authorization for 75,000,000 shares of common stock to be sold to the general public. Gigi and Ron have decided to establish par of $1 per share in order to appeal to a wide variety of potential investors. Gigi and Ron feel that investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" priceAre gigi and ron acting in a professional manner?

get a calculator

Is this a real question that you need to answer for a class?It sounds like an opinion question. The answer is that par value really doesn't matter. It's the market value that matters. Most common stock has a par value of $1, sometimes it is even less than $1. It can even be as low as $0.01 or sometimes there is no par value.So, the answer is that they are acting in a perfectly professional manner. We don't even know the market price of the stock, or the price at which they intend to sell the stock. That's what really matters. But, I am sure that the company would need to be audited before they were allowed to sell publicly traded securities, so the investors can make their own decision as to whether the investment was good or not.

Anyone who incorporates must have shares available. $1 per share is a very normal starting point. If you are asking whether you should invest, I say NO. Wait until they start pulling gold out and then re-evaluate.