No-par stock

No-par stock

No-par stock is stock issued with no par or face value. In modern practice, par value is an antiquated concept and no-par stock is increasingly common.

In most jurisdictions, the par value of a stock is the lowest possible price at which a company could issue stock, and amounts equivalent to the aggregate par values of the stock were required to have special treatment as stated capital in accounting. No-par stocks often require the board of directors of a company to determine a stated value when issuing no-par stock to replace the par-determined capital amounts.

Some U.S. states do not allow corporations incorporated in the state to issue no-par stock. In these states stock's par values are often extremely low relative to the trading value of the shares (e.g., one cent, or fractions of a cent).

See also


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Look at other dictionaries:

  • no–par stock — / nō pär / n: no par value stock at stock Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • no-par stock — Shares in a corporation that are issued without a stated value per share. Compare: par value stock Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc. Nolo’s Plain English Law Dictionary. Gerald N. Hill, Kathleen… …   Law dictionary

  • no-par stock — ➔ stock1 …   Financial and business terms

  • no par stock — See par The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • no-par stock — noun stock with no par value specified in the corporate charter or on the stock certificate • Syn: ↑no par value stock • Hypernyms: ↑stock …   Useful english dictionary

  • no-par stock —    Shares in a corporation that are issued without a price per share stated on the stock certificate. Such shares are valued at the current stock market price …   Business law dictionary

  • stock — n 1 a: the equipment, materials, or supplies of a business b: a store or supply accumulated; esp: the inventory of the goods of a merchant or manufacturer 2: the ownership element in a corporation usu. divided into shares and represented by… …   Law dictionary

  • par-value stock — Shares in a corporation that were given a stated share price (par value) when issued. Compare: no par stock Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc. Nolo’s Plain English Law Dictionary. Gerald N. Hill,… …   Law dictionary

  • stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… …   Black's law dictionary

  • Stock — For capital stock in the sense of the fixed input of a production function, see Physical capital. For other uses, see Stock (disambiguation). Financial markets Public market Exchange Securities …   Wikipedia

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