No-Par Value Stock (redirected from No Par Value Stock)

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.

Notes:

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