Dictionary
Thesaurus
Encyclopedia
Translator
Web
 
Help

no-par value stock

 - 2 dictionary results
Financial Dictionary

No-Par Value Stock

Stock that is issued without the specification of a par value indicated in the company's articles of incorporation or on the stock certificate itself.

Investopedia Commentary

Most shares issued today are classified as no-par or low-par value stock. No-par value stock prices are determined by what investors are willing to pay for them in the market.

Companies find it beneficial to issue no-par value stock as they have flexibility in setting higher prices for future public offerings and have less liability to shareholders in the case that their stock falls dramatically.

See also: Articles of Incorporation, Dividend, Par Value, Preemptive Right

Also spelled: No-Par-Value Stock, No Par Value Stock, No-Par Stock

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
Cite This Source
Legal Dictionary

Main Entry: no–par value stock
see STOCK
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
Cite This Source
Search another word or see no-par value stock on Thesaurus | Reference
FacebookTwitterFollow us: