Practicing Success
Equity Shares may not be issued by a company ordinarily at? |
Par Discount Premium None of the above |
Discount |
A company can issue its shares either at par, at a premium or even at a discount. The shares will be at par is when the shares are sold at their nominal value. Shares sold at a premium cost more than their nominal value, and the amount in excess of the face value is the premium. As a general rule, a company cannot ordinarily issue shares at a discount. It can do so only in cases such as ‘reissue of forfeited shares’ and issue of sweat equity share |