Question

After completing ______ years a company can issue shares at discount.

• A. 2
• B. 3
• C. 1
• D. 4

Answer 1

Answer: (C)

1

If a share is issued on a lesser value than the face value of the shares, this is called as shares issued on discount. For example, if the face value of the share is Rs.100 and it is issued at Rs.95, than it is a issued at 5% discount.

A company can issue shares at discount only after completion of 1 year of its business operations.