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Question

If the Market Value of a share is greater than the Nominal Value, the share is said to be at _______.


A

discount

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B

premium

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C

par

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D

cash value

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Solution

The correct option is B

premium


Price of a share in the market, at any time, is called its cash value or market value. If the Market Value of a share is greater than the Nominal Value, the share is said to be at premium.
  1. At Par: M.V. = N.V.​

  2. Above Par or At Premium: M.V. > N.V.​

  3. Below Par or At Discount: M.V. < N.V.


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