Skip to main content
Glite Dictionary
no-par stock

no-par stock

9.5
Stock without a fixed minimum price set by the company
  • noun
  • Specialized
translation icon : acciones sin valor nominal
  • Unlike traditional shares, no-par stock does not state a minimum selling price.

Examples

  • The company decided to issue no-par stock to allow greater flexibility in pricing.

  • Investors should understand the legal implications of purchasing no-par stock.

  • Investors prefer no-par stock for its flexibility.

  • Many companies issue no-par stocks to attract investors.

  • Investors should understand the legal implications of purchasing no-par stock.

  • The company decided to issue no-par stock to allow greater flexibility in pricing.

  • Unlike traditional shares, no-par stock does not state a minimum selling price.

Synonyms

no-par-value stock
vsno-par stock
  • Specialized
7.9

A share that has no fixed value stated by the company

is the hyphenated spelling often used instead of the spaced term

Surface Forms

no-par stock singular
no-par stocks plural

Morphology

no-par + stock

The phrase is a direct composition of 'no' (none) + 'par' (nominal/face value) + 'stock', so its meaning 'stock without a par value' is derivable from the constituents. It is compositional and thus transparent, although it is a specialized legal/financial term that depends on knowing the financial sense of 'par'.

Etymology

No-par stock comes from old stock certificates that often showed a printed 'par', a fixed 'minimum price'. When a certificate had no number it was called no-par, so today no-par stock means shares with no fixed 'minimum price' and lets the company have more freedom to set the price.