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Webster's New World Finance and Investment Dictionary » no-par stock
no-par stock
no-par stock definition - finance
Capital stock, which is stock that is
held by a corporation that hasnÂ’t been issued yet, that doesnÂ’t have a par value, which is nominal dollar value
applied to a stock or a bond. Typically, a stockÂ’s par value is $1. Stock is
issued without a par value because most states prohibit an original stock issue
below par value and thereby limit a corporationÂ’s flexibility in accessing
capital.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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