A class of stock that can usually be issued at any price without creating a minimum legal capital deficiency is called:
A)Convertible stock.
B)No-par stock.
C)Callable stock.
D)Noncumulative stock.
E)Discounted stock.

Question

Quizplus · Accepted Answer

No-par stock refers to a class of stock that doesn't have a par value assigned to it. Hence, it can be issued at any price without creating any minimum legal capital deficiency. This type of stock is advantageous as it provides more flexibility to companies while issuing shares and doesn't impose any limitation on the amount they can charge. Thus, No-par stock is the best choice for the given scenario.

A Class of Stock That Can Usually Be Issued at Any