Stated Value

[STEY-tid VAL-yoo]

What is the definition of Stated Value?

The per share amount determined by the board of directors to be recorded in the capital stock account when issuing no-par value stock.

Using Stated Value in an Example

A corporation issues 1,000 shares of no-par value stock and the board of directors sets a stated value of $10 per share. Consequently, $10,000 is recorded in the capital stock account, representing the stated value multiplied by the number of shares issued.

Using Stated Value in a sentence

During the board meeting, the directors agreed on a stated value of $15 per share for the new issuance to strengthen the company's equity base.

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