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The par value of shares sets only a bottom limit for your business, but the board of directors may set the price of stock at any amount above par. Let's say your par value is $. 01 but the board of directors sells stock to an investor for $5.00 per share. This is perfectly legal.
A stated value is an amount assigned to a corporation's stock for internal accounting purposes when the stock has no par value. Like par value?which is the face value of a stock stated in the corporate charter?stated value is nominal, typically between $0.01 and $1.00. The stated value has no relation to market price.
If you already have par value and you want to raise or lower it, things are a bit more complicated. Typically, you can't just make an amendment saying you now have a new par value. Instead, the most common way that corporations change their par value is with a stock split (or reverse stock split).
par value stock's price is determined by supply and demand, which naturally fluctuates ing to market conditions. When companies have nopar value stock, this means that the stock price is allowed to experience natural variations.
Par value, also known as nominal or original value, is the face value of a bond or the value of a stock certificate, as stated in the corporate charter. Stock certificates issued for purchased shares show the par value.
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.
Most often in a small business corporation the stock is called ?no par value stock? which simply means that there is no set amount of payment required to purchase the stock of the corporation. Each time stock is issued, the directors will decide how much must be received for the shares.