District of Columbia Amendment of common stock par value

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Multi-State
Control #:
US-CC-3-215A
Format:
Word; 
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This sample form, a detailed Amendment of Common Stock Par Value document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.
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FAQ

The par value of shares sets only a bottom limit for your business, but the board of directors may set the price of stock at any amount above par. Let's say your par value is $. 01 but the board of directors sells stock to an investor for $5.00 per share. This is perfectly legal.

No Par Value Shares represent stocks or shares in a company that do not have a fixed nominal (par) value, giving flexibility in setting their price and allowing for easier trading on the stock market.

Typically, you can't just make an amendment saying you now have a new par value. Instead, the most common way that corporations change their par value is with a stock split (or reverse stock split). A stock split is exactly what it sounds like: a division of shares.

Par value is the value of a single common share as set by a corporation's charter. It is not typically related to the actual value of the shares. In fact it is often lower. Any stock certificate issued for shares purchased shows the par value. When authorizing shares, a company can choose to assign a par value or not.

Key Takeaways. A par value for a stock is its per-share value assigned by the company that issues it and is often set at a very low amount such as one cent. A no-par stock is issued without any designated minimum value. Neither form has any relevance for the stock's actual value in the markets.

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District of Columbia Amendment of common stock par value