The market value method uses the market value paid by the company during a repurchase of shares and ignores their par value. In this case, the cost of the treasury stock is included within the stockholders’ equity portion of the balance sheet. The par value of a bond is relevant to the average investor, while the par value of a stock is something of an anachronism. Par value for a share refers to the nominal stock value stated in the corporate charter. Shares can have no par value or very low par value, such as a fraction of one cent per share. As noted above, the term market value refers to the amount that an asset is worth at any given time.

This was far more important in unregulated equity markets than in the regulated markets that exist today,