No Par Value

From Reuters Financial Glossary

Shares with no par value assigned at the time the stock is authorized. Shares are authorized for issue as part of the legal process of setting up a company. Par value is the nominal face value of the shares and bears no relationship to the actual traded value of the shares or to the underlying assets which they represent. The advantage of issuing no par value is to avoid the situation of creating a liability to shareholders in the unlikely event of the traded share price falling below the par value of the shares.

See also: Par Value