No par value is the value placed on the shares of stock at incorporation by the Secretary of Commerce.

No Par Value

Shares issued without a nominal or stated value per share, with the market price determined by demand.

Secretary of Commerce

The head of the U.S. Department of Commerce, responsible for promoting American businesses and trade.

Incorporation

The process of legally declaring a corporate entity as separate from its owners, providing limited liability, tax advantages, and other benefits.

Acquire insight into the relevance of corporate finance techniques, encompassing both debt and equity financing, in addition to issuing and selling shares.

Verified Answer

Final Answer :

False

Explanation :

No par value means that the shares of stock have no assigned value at incorporation. It is not placed by the Secretary of Commerce.

Learning Objectives

Acquire insight into the relevance of corporate finance techniques, encompassing both debt and equity financing, in addition to issuing and selling shares.