no par value capital stock

no par value capital stock
In the USA and Canada, stock (shares) that have no par values printed on the stock certificate. An advantage of such stock is that it avoids a contingent liability to stockholders in the event of a stock discount. For accounting purposes, on the issue of no par value capital stock, cash is debited and a capital stock account credited with the total proceeds received. No premium account is required. No par value shares are not permitted under UK law.

Big dictionary of business and management. 2014.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • no par value capital stock — In the USA and Canada, stock (shares) that have no par value or assigned value printed on the stock certificate. An advantage of such stock is that it avoids a contingent liability to stockholders in the event of a stock discount. For accounting… …   Accounting dictionary

  • Par value — Par value, in finance and accounting, means stated value or face value. From this comes the expressions at par (at the par value), over par (over par value) and under par (under par value). The term par value has several meanings depending on… …   Wikipedia

  • capital stock — Stock authorized by a firm s charter and having par value, stated value, or no par value. The number and the value of issued shares are usually shown, together with the number of shares authorized, in the capital accounts section of the balance… …   Financial and business terms

  • capital stock — n. 1. the capital of a corporation, divided into negotiable shares 2. the total par or stated value of the authorized and issued shares of stock …   English World dictionary

  • capital stock tax — A state level tax, usually imposed on out of state corporations for the privilege of doing business in the state. The tax may be based on the entity s apportionable income or payroll, or on its apportioned net worth as of a specified date. Such… …   Black's law dictionary

  • capital stock tax — A state level tax, usually imposed on out of state corporations for the privilege of doing business in the state. The tax may be based on the entity s apportionable income or payroll, or on its apportioned net worth as of a specified date. Such… …   Black's law dictionary

  • premium on capital stock — In the USA, the excess amount received from stockholders over the par value of the stock issued. The premium account is shown in the balance sheet under the paid in capital section of stockholders equity and should not be regarded as income …   Accounting dictionary

  • stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… …   Black's law dictionary

  • Capital Surplus — Equity which cannot otherwise be classified as capital stock or retained earnings. It s usually created from a stock issued at a premium over par value. Capital surplus is also known as share premium (UK), acquired surplus, donated surplus, paid… …   Investment dictionary

  • stock — n 1 a: the equipment, materials, or supplies of a business b: a store or supply accumulated; esp: the inventory of the goods of a merchant or manufacturer 2: the ownership element in a corporation usu. divided into shares and represented by… …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”