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What does Capitol Stock 5000 shares-no par value mean?

Answer:
Par value, sometimes referred to as maturity value is the face value of a stock certificate or bond and sets the price below which the security will not be issued. In the case of a bond, it is the principle amount that is due at maturity or call. In the case of a company's stock, the par value has no relation to the market value of the security and is typically set at $0.01 or $0.001 for US companies (though they can also issue no par value shares).

Federally incorporated Canadian companies by contrast can only issue no par value shares. Provincially incorporated companies can issue shares with a par value which can be helpful in tax planning, estate freezes and unique preferred share issues.

So the short answer to your question is that the 5,000, simply denotes how many shares you have, but the "no par value" part is for all intents and purposes irrelevant and only means that the shares were initially created with no par value. It's an aspect of the shares that's really only relevant to the company's accountants.

First answer by Webwraith. Last edit by Webwraith. Contributor trust: 0 [recommend contributor recommended]. Question popularity: 2 [recommend question].