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n200080 [17]
2 years ago
12

Stated value of no-par stock is:

Business
2 answers:
Nitella [24]2 years ago
6 0

Answer:

C. The market value of the stock on the date of issuance.

Explanation:

No-par stocks do not have any par value printed on them.This helps companies avoid the theoretical liability for if the stock falls below the par value. When there is no par value of stock, investors pay what they think is the right price according to cash flows and profitability of the issuing company, thus no-par stocks carry a market value as associated with it by the investors.

Hope that helps.

sdas [7]2 years ago
5 0

Answer: The correct answer is "e. An amount assigned to no-par stock by the corporation's board of directors.".

Explanation: Stated value of no-par stock is: <u>An amount assigned to no-par stock by the corporation's board of directors.</u>

<u>The board of directors of the corporation are those who designate a declared value for no-par stock.</u>

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