The Lima Arizona Amendment of Common Stock Par Value is a legal process that entails changing the stated nominal value per share of a company's common stock. This amendment is a significant financial decision for businesses as it impacts their financial structure and overall shareholder equity. Common stock refers to ordinary shares issued by a corporation, granting shareholders ownership rights and a share of profits. The par value is the initial price at which shares are issued and is typically a minimal amount specified in the company's incorporation documents. Through the Lima Arizona Amendment of Common Stock Par Value, businesses can modify the par value of their common stock. This process can involve increasing or decreasing the par value to align with the company's financial goals, market conditions, or regulatory requirements. This amendment requires careful consideration and often involves legal procedures, including board resolutions and shareholder approval. By increasing the par value, a company can enhance its financial standing and create a perception of higher value per share. Conversely, decreasing the par value may increase the liquidity of shares and make them more affordable for potential investors. Additionally, reducing the par value can mitigate legal liabilities if the company goes bankrupt or faces financial challenges. Different types of Lima Arizona Amendments of Common Stock Par Value include: 1. Increase of Par Value: This type of amendment occurs when a company raises the nominal value per share. It could reflect a company's increased assets, improved profitability, or a desire to attract higher-value investors. 2. Decrease of Par Value: In this case, a company lowers the nominal value per share, often done to make shares more accessible to a wider range of investors or to adjust to market conditions. 3. Consolidation or Reverse Split: This amendment aims to decrease the number of outstanding shares while increasing the par value proportionally. The intention could be to align with industry standards, raise stock value, or regain compliance with stock exchange listing requirements. 4. Stock Split: The opposite of a consolidation, a stock split involves dividing the outstanding shares into a larger number, while reducing the par value proportionally. This measure typically increases stock liquidity, lowers the share price, and attracts small investors. It is essential for companies contemplating a Lima Arizona Amendment of Common Stock Par Value to consult legal and financial professionals to understand the specific ramifications, compliance requirements, and potential impacts on their business and stakeholders.