Asked by
shadrack nyambi
on Dec 17, 2024
Verified
A company issues no-par value with no stated value stock. Therefore, the company has a minimum legal capital amount.
No-par Value
Refers to stocks issued without a nominal or face value, where the market value is determined by investor demand.
Legal Capital
The minimum amount of capital that a company must maintain as required by law, often to protect creditors.
- Recognize the differences between par value and no-par value stock.
Verified Answer
MR
Learning Objectives
- Recognize the differences between par value and no-par value stock.