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Question

If shares are issued at its face value, it is called as issue at ______.

A
Premium
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B
Discount
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C
Par
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D
None of these
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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.

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