stated value

stated value definition - business

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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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