State laws prohibit the issuance of stock at less than par or stated value.

Name: State laws prohibit the issuance of stock at less than par or stated value.
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Question

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State laws typically require corporations to issue stock at par or a stated value, which is the minimum price at which the stock can be sold. This is intended to protect shareholders by ensuring that the company receives a fair value for its shares and to prevent the issuance of "watered-down" or undervalued stock.

State Laws Prohibit the Issuance of Stock at Less Than