Question

Match the following Market value (M.V.) with the type of share if the Face value (F.V.) of the share is 100.

• A. Share is at premium
• B. Share is at par
• C. Share is at discount

Answer 1

If Market Value (M.V.) $>$ Face Value (F.V.) then the share is at premium. Therefore, share having market value (M.V.) = 120 is at premium.

If Face Value (F.V.) $>$ Market Value (M.V.) then the share is at discount. Therefore, share having market value (M.V.) = 80 is at discount.

If Market Value (MV) $=$ Face Value (FV) then the share is at par. Therefore, share having market value (M.V.) = 100 is at par.