No-par 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
- The company issued no-par stock to its investors, allowing for more flexibility in determining the stock's value.
- No-par stock is often preferred by companies that want to avoid the constraints of a fixed par value.
- The state's business laws permit the issuance of no-par stock, which has become a popular choice among entrepreneurs.
- The corporation's charter specified that all shares would be no-par stock, giving the board of directors more freedom to set prices.
- The investor purchased a large block of no-par stock in the startup company, hoping to reap significant returns if the business took off.