Question

Q. With reference to the pricing of the shares, consider the following statements:

Select the correct answer using the codes given below:

• A. 1 only
• B. 2 only
• C. 3 only
• D. 1, 2 and 3

Answer 1

The correct option is C 3 only

Explanation:

• Statement 1 is incorrect: If the market value of the share is being more than its face value then it means shares are being sold at a premium.
• Statement 2 is incorrect: If the market value of the share is being less than its face value then it means shares are being sold at discount.
• Statement 3 is correct: If the market value of the share is equal to its face value then it means shares are being sold at par value in the market.