stated value

Stated value

A monetary worth figure that bears no relation to market value that is assigned, for accounting purposes, to stock for use instead of par value.

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Stated Value

An arbitrary value a publicly-traded company assigns to its common stock on its financial statements. The stated value bears no relationship whatsoever to a stock's market value; however, in the event of liquidation it provides shareholders with some level of protection as the stated value shows that their stock does have some worth.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

stated value

A value assigned to common stock by the firm's management for purposes of financial statements. Stated value, used in place of par value, is calculated on a per-share basis by dividing the stated capital resulting from a new issue of common stock by the number of new shares issued. Stated value is unrelated to the stock's market price and is of little importance to the shareholders.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.