Final answer:
When no-par value stock is issued without a stated value, the proceeds are accounted for as paid-in capital, which is critical for a company's growth and is not subject to repayment obligations.
Step-by-step explanation:
When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock become paid-in capital. Paid-in capital is the amount of money that a company receives from investors in exchange for its stock, and represents funds raised by the company from equity rather than from ongoing operations. This type of capital is crucial for a company to finance growth and development, as it does not need to be repaid like a loan would. No-par value stocks can be advantageous in avoiding a legal capital requirement that cannot be used for dividends or returned to shareholders.