No-Par Value Stock


DEFINITION of '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.

BREAKING DOWN 'No-Par Value Stock'

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.

  1. Dividend

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  3. Par Value

    The face value of a bond. Par value for a share refers to the ...
  4. Articles Of Incorporation

    A set of documents filed with a government body to legally document ...
  5. Preemptive Right

    A privilege extended to select shareholders of a corporation ...
  6. Full Stock

    A stock with a par value of $100 per share. A full stock issue ...
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