True or false: Some states allow corporations to issue no-par value common stock.

This statement is True. In the United States, certain states permit corporations to issue shares of stock without a par value, referred to as "no-par value stock". This means that the shares do not have a specified nominal value assigned to them in the corporate charter. Historically, stocks were commonly issued with par value to ensure that a minimum price was established for the shares. However, the flexibility of no-par value stock allows corporations to issue shares based on what the board of directors deems appropriate at the time of issuance, without being confined to a fixed minimum price. This approach can be advantageous for companies, particularly startups and smaller enterprises, as it provides greater flexibility in capital structure and helps avoid legal complications regarding the minimum value of shares. Specific regulations governing no-par value stock can vary by state, so corporations must ensure compliance with local laws.