Question

Shares can be issued at __________.

• A. Par
• B. Premium
• C. Discount
• D. Any of the above three

Answer 1

Answer: (D)

Any of the above three

A company can issue its shares either at par, at a premium, or even at a discount. The shares will be at par is when the shares are sold at their nominal value. Shares sold at a premium cost more than their nominal value, and the amount in excess of the face value is the premium. And of course, shares sold at discount cost less than the face/nominal value.