Question

The amount per share of no-par value stock that is recorded in the corporation's stock accounts; an amount designated by law as not subject to withdraw by stockholders is known as ________________.

Answer 1

The stated value is the amount per share of no-par value stock that is recorded in the corporation's stock accounts and is designated by law as not subject to withdraw by stockholders.

Step-by-step explanation:

The amount per share of no-par value stock that is recorded in the corporation's stock accounts and is designated by law as not subject to withdraw by stockholders is known as stated value. Stated value is a legal requirement that certain states impose on no-par value stock to provide a minimum value per share. It is typically set at an arbitrarily low amount, such as $0.01 per share.

For example, if a company issues 1,000 shares of stock with a stated value of $0.01 per share, the total stated value of the stock would be $10 (1,000 shares x $0.01 per share).