No-Par Value Stock

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DEFINITION

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 EXPLAINS

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.


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