No-par value stock is issued without a par value. The value of no-par value stocks is determined by the price investors are willing to pay on the open market. The advantage of no-par value stock is that companies can then issue stock at higher prices in future offerings.

What does of no par value mean?

if company shares have no par value, they have no stated value or price when they are made available for the first time: The trustees are issuing an unlimited number of shares of beneficial interest, with no par value.

How do you account for no par value shares?

The accounting entry for a no-par-value stock will be a debit to the cash account and credit to the common stock account within shareholder's equity.