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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
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B
2 only
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C
3 only
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D
1, 2 and 3
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Solution

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.

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