When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock become legal capital.

Name: When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock become legal capital.
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Question

Quizplus · Accepted Answer

When no-par value stock is issued, the entire proceeds from the issuance become legal capital because there is no stated value to be assigned to the stock.

When No-Par Value Stock Does Not Have a Stated Value