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Maverick
Maverick, Attorney
Category: Legal
Satisfied Customers: 5766
Experience:  20 years experience as a civil trial and appellate lawyer
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Is it legal to issue shares of common stock at a price below

Customer Question

Is it legal to issue shares of common stock at a price below par in Wyoming
Submitted: 1 year ago.
Category: Legal
Expert:  Maverick replied 1 year ago.
Welcome. My name is Maverick. I very much enjoy what I do and I hope that you will benefit from the information or assistance that I provide.
The par value of a share of stock is the value stated in the corporate charter. Upon on initial offering, shares of that class cannot be sold upon below par. The issuing company promises not to issue shares below par value so investors can be confident that no one else will receive a more favorable issue price. Thus, par value is the nominal value and the company's minimum price for a share of stock.
Answer: No. However, the Wyoming corporation could issue shares without a stated par value for any value it decides to.
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