what is no par value stock 
no par value stock is issued without the specification of a par value indicated in a company s articles of incorporation or on its stock certificates most shares issued are classified as no par or low par value stock where prices of the latter are determined by the amount of cash investors are willing to pony up for the stocks on the open market understanding no par value stockcompanies may find it beneficial to issue no par value stock because doing so gives them the flexibility to set higher prices for future public offerings this reduces the downside risk for shareholders if the stock price sharply plummets because of the known fluctuations in pricing associated with the stock market many investors typically do not deem par necessary prior to purchasing a particular investment in addition the production of stocks with a face value may result in legal liabilities regarding the difference between the current going rate and the par value assigned to the stocks making them a less attractive option for issuers 