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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