What is a no-par-value stock?

Definition no-par-value stock

How do we define: no-par-value stock?


No-Par-Value Stock is the stock with no minimum value. Most states allow no-par stock. If the stock is no-par stock then the amount of stated capital is an arbitrary amount assigned by the board of directors. Further, the value of capital for franchise tax purposes is determined by the state and this may result in higher franchise taxes in comparison with low par-value stock.


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