What shares may be classified as No-Par value shares of stocks?

No-par value shares of stock refer to shares that do not have a designated face value or par value assigned to them. This means that the shares are issued without a nominal value that would typically be stated on the stock certificate.

Common stocks can certainly be issued as no-par value shares. This practice allows companies greater flexibility in terms of issuing shares and raising capital because they are not constrained by a set par value that must be adhered to. When a corporation issues common stock with no par value, it has the option to establish the issue price based on market conditions or its financial strategy at the time of issuance, without having to meet the requirements of a par value.

Preferred stocks can also be issued as no-par value shares. However, the answer provided may not reflect the complete scope of possibilities regarding both types of stocks. The context of the question, while implying that only common stocks can be classified as no-par value shares, overlooks the fact that preferred stocks can also be issued in this manner.

In summary, while the answer indicates that only common stocks may be classified as no-par value shares, it is important to recognize that both common and preferred stocks can indeed be classified in such a manner, depending on the structure and decisions made by the issuing company