answersLogoWhite

0


Best Answer

The only reason 2 issue shares in a privately-held (not publicly traded ) company is to document the portion of the value of the company that is owned by the shareholder. It would be senseless to issue shares with no value. It would mean the companies net worth would have to be $0.00 or bankrupt. So the answer is No.

User Avatar

Wiki User

11y ago
This answer is:
User Avatar
More answers
User Avatar

AnswerBot

1d ago

Yes, shares can be issued at a nominal value, such as $0.01, in a private company. This allows the company to legally issue shares without requiring a significant capital investment from shareholders.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Can shares be issued at no value in a private company?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Law

Why is insider trading illegal?

Insider trading is illegal because it gives an unfair advantage to those with privileged information, allowing them to profit at the expense of other investors who do not have access to the same information. It undermines the integrity of the financial markets and erodes trust in the system. Regulating against insider trading helps to ensure a level playing field for all participants in the market.


What are the diminished value laws in KY?

In Kentucky, the at-fault driver's insurance company is generally responsible for paying the diminished value of a car that has been in an accident. However, Kentucky law does not explicitly address diminished value claims, so it may be necessary to negotiate with the insurance company to seek compensation for diminished value. It is recommended to consult with a legal professional for guidance on how to pursue a diminished value claim in Kentucky.


Define what a private sale treaty means?

A private sale treaty is a formal agreement between the buyer and seller to transfer ownership of an asset, typically real estate, outside of a public auction or open market sale. This type of sale allows for negotiation of terms, such as price and conditions, in a more private setting.


What is the value of the 1807 an act for the abolition of the slave trade 2 pound coin?

£2.00


What are some examples of the establishment of private property led to later developments?

The establishment of private property rights has led to economic development by incentivizing individuals to invest in and improve their property, resulting in increased productivity and wealth creation. Additionally, private property ownership has stimulated innovation and technological advancements as individuals seek new ways to utilize and maximize the value of their assets. Furthermore, the protection of private property rights has been associated with political stability and social order, as it provides individuals with a sense of security and ownership over their possessions.

Related questions

What is the meaning of issues of shares at premium?

When shares are issued at value which is more than face value then it is called shares issued at premium.


What is Frozen Equity?

Frozen Equity is value or money of the shares issued by a company that is frozen, and you would not have access to the value or funds ..


What is shares premium?

When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.


An investor injects capital in to a private limited company. how are they paid back?

Whether the investor would receive shares is subject to the investment agreement. If shares are given they would normally be granted based on the value of the investment as a percentage of the value of the company.


What are examples of common stock?

omprehensive ExampleThe common stock portion of the equity section of Apple Inc. balance sheet as at 24 September 2011 is given below:Common stock (no par value):Shares authorized1,800,000Shares issued and outstanding929,277Value in million Dollars13,331 It provides the following information:The company has no par value stock.There is no stated value disclosed.Authorized share capital is 1.8 million shares.The company has issued roughly half of its authorized share capital as at 24 September 2011.The company has no treasury stock that is why shares issued and shares outstanding are equal.


Difference between fully paid shares and shares issued at discount?

Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.


Deffnation of equity?

The definition of equity is the quality of being fair and impartial. There is also the value of the shares issued by a company, if you are looking on the business side.


The hamilton brush company issued 2500 shares of common stock worth 100000.00 total what is the par value of each share?

$40.00


The Waverly Brush Company issued 4000 shares of common stock worth 20000000 total What is the par value of each share?

$50


The Waverly Brush Company issued 4000 shares of common stock worth 200000 total What is the par value of each share?

400


What is the meaning of shares at par?

Issue of shares at par - Shares are said to be issued at par when they are issued at a price equal to the face value. For example if the face value of a share is $100 and issue price is also $100 than the share will be said as thae share has been issued at par.


What is the share premium?

When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.