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No par value stock |
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No par value stockA stock with no par value given in the charter or stock certificate.No par value stock Similar MatchesFair market valueFair market valueThe traded value of an asset agreed by seller and buyer. Present value of growth opportunitiesPresent value of growth opportunitiesNet present value (NPV) of investments the firm is expected to make in the future. Net asset valueNet asset valueThe total assets of a company less all its liabilities including loan capital, and preference shares. NAV is usually expressed on a per share basis. For example:assets of a company = £12,000,000, liabilities = £3,000,000number of ordinary shares = 18,000,000NAV per share = (£12,000,000 - £3,000,000) / 18,000,000 = 50pHow relevant is NAV for investors in companies? For people-based businesses it is not particularly relevant. An advertising agency, for instance, would have a very low NAV because it has little invested in plant and equipment, and its profitability is driven by people and ideas. Elsewhere, NAV is interesting to value investors who want to know what underpins a company's share price. If a company has a NAV of 120p and its share price is 100p, there is a 20p cushion.The most common use of NAV is in assessing the share price of investment trusts - collective funds which invest in other companies. It is fairly easy to calculate the NAV of investment trusts because their assets are for the most part quoted companies. Investment trusts trade at a discount or premium to their NAV. Investment valueInvestment valueApplies mainly to dealer securities. Fixed income value of a convertible, the price at which the convert would have to sell as a straight debt instrument relative to the yield of other bonds of like maturity, or size, and quality; represents a presumed floor to the bond, assuming the continued creditworthiness of the issuer and the general level of interest rates. Bond value. See: conversion value. Net present value ruleNet present value ruleAn investment is worth making if it has a positive NPV Projects with negative NPVs should be rejected. Further SuggestionsStraight valueUnit-value isoquant value Market Value Extraordinary positive value Present value factor Private market value (PMV) Value broker Net present value Original face value Value added tax Adjusted present value (APV) nominal value Marginal value product Reinstatement value value added tax face amount (face value) cash value life insurance market value Value dating Value added book value no par value Parity value Written down value |
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