No-Par Stock Law and Legal Definition

No-par stock refers to stocks that are issued without a specific value assigned to it. There is no specification of a par value indicated in the company's articles of incorporation or on the stock certificate itself. For accounting purposes, it is given a legal or stated value that has little or no connection to the stock's actual value. Most shares issued today are classified as no-par or low-par value stock. No-par value stock prices are determined by what investors are willing to pay for them in the market.