Common stock is a type of security that represents ownership of equity in a company. Common stock is reported in the stockholders’ equity section of a company’s balance sheet as the nominal or par value of the shares issued. Par value is the minimum amount that a share can be sold for and is usually a very small amount. For example, if a company issues 100 shares of common stock with a par value of $1 per share, its common stock on the balance sheet is $100. Common stock does not reflect the market value or book value of the shares, which may be higher or lower than the par value.