1
Question
On approval from the Central Government, the rate of discount on issue of shares can be ________ percent of the nominal value of the shares.
On approval from the Central Government, the rate of discount on issue of shares can be ________ percent of the nominal value of the shares.
Open in App
Solution
The correct option is B 10
Discount
on shares means that shares issued by the company have a market value at a discounted rate which is always less than the face value decided by the
company.The government, in order to maintain the discount on shares at a standard level, has
prescribed a limit of 10% and every company is bound to have a discount on
shares up to 10%.
If a
company discounts it shares more than 10%, it means that it is violating the
government rules.
Discount on shares means that shares issued by the company have a market value at a discounted rate which is always less than the face value decided by the company.The government, in order to maintain the discount on shares at a standard level, has prescribed a limit of 10% and every company is bound to have a discount on shares up to 10%. If a company discounts it shares more than 10%, it means that it is violating the government rules.
Suggest Corrections
0
Similar questions
View More
Join BYJU'S Learning Program
Explore more
Join BYJU'S Learning Program
