no-par stock (Meaning)
Wordnet
no-par stock (n)
stock with no par value specified in the corporate charter or on the stock certificate
Synonyms & Antonyms of no-par stock
No Synonyms and anytonyms found
no-par stock Sentence Examples
- No-par stock provides companies with flexibility in determining the stated value of their shares.
- Companies often issue no-par stock to avoid the potential legal liabilities associated with par-value stock.
- The value of no-par stock is typically determined by the market, not by the company's charter.
- While no-par stock does not have a stated par value, it may still have a preferred or common designation.
- No-par stock can be issued at a price different from its stated value, providing companies with options for capitalizing their businesses.
- Investors who purchase no-par stock should be aware that there is no guarantee of its future value.
- Some jurisdictions prohibit the issuance of no-par stock, so companies should consult legal counsel before making such a decision.
- No-par stock can be a valuable tool for companies seeking to raise capital without the constraints of par value.
- The SEC does not require companies to disclose the par value for no-par stock in their financial statements.
- Issuing no-par stock can help companies to avoid the need for costly stock splits or reverse stock splits.
FAQs About the word no-par stock
stock with no par value specified in the corporate charter or on the stock certificate
No synonyms found.
No antonyms found.
No-par stock provides companies with flexibility in determining the stated value of their shares.
Companies often issue no-par stock to avoid the potential legal liabilities associated with par-value stock.
The value of no-par stock is typically determined by the market, not by the company's charter.
While no-par stock does not have a stated par value, it may still have a preferred or common designation.
