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No-Par Stock And Its Effect On Washington Law, Jeffrey Heiman

Washington Law Review

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 …