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If a company has sold no-par-value stocks, the proceeds from the transaction will be credited to the common stock account only. Hence, the accounting entry will be a debit to cash and credit to the common stock account.
No-par value stock doesn't have a redeemable price, rather prices are determined by the amount that investors are willing to pay for the stocks on the open market. Most shares issued today are identified as being either no-par value or low-par value stock.
Par value, which is also called par, nominal value, or face value, is the amount at which a security is issued or can be redeemed. No-par value stock doesn't have a redeemable price, rather prices are determined by the amount that investors are willing to pay for the stocks on the open market.
No-par stocks are those where the value of the stocks relies completely on the market, not at all based upon any guaranteed value (the par value) set at the issuance of the stocks.
Par value is the minimum share price, while market value is the current trading price. Par value is set in the certificate of incorporation. For most startups, the par value is set incredibly low, generally $0.0001 or $0.00001 per share.