Advantages

The advocates of o-par stock put forward the following advantages:

1. No-par stock is a truthful representation of ownership. Regardless of the par value assigned to a share or stock, it represents fractional ownership in the corporation. The buyer of no-par shares acquires only a proportionate share in the assets and earning power of a corporation.
2. The holders of no-par value shares have no liability beyond the initial payment and later on such shares may be sold at any price.
3. Selling price may be adjusted to prevailing market quotations.
4. The number of shares may be increased easily
5. There is no manipulation of accounts.
6. In the case of no-par stock, the process of capital reduction can be carried out painlessly.