No-Par Stock

No-par stock is a type of stock that does not have a par value assigned to it. Par value is a nominal amount set when a stock is issued, often for accounting purposes, but no-par stocks are issued without this specific value. Instead, the value of no-par stock is determined by the market price. No-par stock simplifies the accounting process and gives the company flexibility in pricing shares.

Example

A company issues no-par stock, meaning that the value of each share is based solely on what the market determines rather than an assigned par value.