What question did this study set out to answer?

To investigate state laws related to paid-in surplus and stock valuation, particularly regarding no-par stock and cash dividends.

State Law in Regard to Paid-in Surplus.

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Analysis of laws governing paid-in surplus and stock issuance across U.S. states, revealing significant variations.

To investigate state laws related to paid-in surplus and stock valuation, particularly regarding no-par stock and cash dividends.
Reviewed legal statutes from U.S. states concerning paid-in surplus and stock issuance.
Examined the treatment of no-par and par value stock by individual states and territories.
Identified states that prohibit discount issuance of stock.
Pennsylvania and Colorado allow allocation of paid-in surplus for no-par common stock only.
Thirty-two states prohibit issuance of any stock at a discount.
Some states do not address par value stock discount in their statutes, likely following common law.

Lawrence J. Benninger (1946) studied this question.

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