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

Name: When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock becomes legal capital.
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Quizplus · Accepted Answer

This is true. When no-par value stock is issued, the entire proceeds from the issuance of the stock become the legal capital, which is recorded in the stockholders' equity section of the balance sheet.

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