If shares are issued at its face value, it is called as issue at ______.
A
Premium
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Discount
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Par
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
None of these
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution
The correct option is A Premium When shares are issued at its nominal value, then the shares are issued at par. When the shares are issued more than nominal value, then the shares are issued at premium. The difference between face value and nominal value is called premium.