Question

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

• A. discount
• B. premium
• C. par
• D. cash value

Answer 1

The correct option is A

discount

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 less than the Nominal Value, the share is said to be at discount.

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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