No-par-value Stock (Noun)
Meaning
Stock with no par value specified in the corporate charter or on the stock certificate.
Classification
Nouns denoting possession and transfer of possession.
Examples
- No-par-value stock provides companies with greater flexibility in issuing and purchasing shares.
- Most states have eliminated par value requirements, and as a result, nearly all new stock issues are no-par-value stock.
- In this instance, the no-par-value stock is essentially assigned a book value per share, based on the amount of consideration received.
- Companies may choose to issue no-par-value stock due to its administrative and accounting benefits.
- The distinction between par-value stock and no-par-value stock has become less significant over time.