Asked by Lauren Ferris on Jul 06, 2024

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How much must a shareholder who signs a stock subscription pay for no-par shares?

A) The depreciated value
B) At least the value on the last sale
C) The value as set by the board of directors
D) The value as voted upon by shareholders
E) The fair market value

No-par Shares

Stocks issued without a specified face value, where the value is determined by the price investors are willing to pay for them.

Stock Subscription

An agreement to purchase a specified number of shares in a company, often before they are available to the general public.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

  • Acquire knowledge of different stock categories and their respective privileges, along with the implications for holders.
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Nicole LofstedtJul 11, 2024
Final Answer :
E
Explanation :
For no-par shares,or shares without a par value,the shareholder must pay the corporation the fair market value of the shares.