Question

The _______ of share is the maximum amount at which the share can issued.

• A. nominal value
• B. book value
• C. fair value
• D. market value

Answer 1

The correct option is A nominal value

A share cannot be issued fully paid for anything less than its nominal value, that is, it cannot be issued at a discount.

So, the nominal value is the maximum amount for the particular share.

Thus, the nominal value of share is the maximum amount at which the share can issued.