In 1912 the New York Legislature passed the first statute authorizing the organization of corporations in New York with stock of no-par value. Such stock is defined by Cook as "stock which does not state how much money it represents." Immediately upon the passage of the law in New York a furor arose in the law reviews of the country, either in criticism of, or in defense of, the innovation in the field of corporation finance. That this subject is becoming a popular field of corporate legislation is beyond denial for at the present time thirty-nine states, including Washington allow corporations to issue such stock; and the common stock issues are becoming increasingly popular.
Notes and Comments,
No-Par Stock and Its Effect on Washington Law,
Wash. L. & Rev.
Available at: https://digitalcommons.law.uw.edu/wlr/vol2/iss1/4