When no-par value shares do not have a stated value, the entire proceeds from the issuance of the shares becomes legal capital.

Question

Quizplus · Accepted Answer

When no-par value shares are issued, the entire proceeds from the issuance of the shares become legal capital because there is no stated value for the shares. This is in contrast to par value shares which have a stated value that is designated as legal capital.

When No-Par Value Shares Do Not Have a Stated Value