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Question
The rate of discount on issue of shares should not exceed _____ % of the nominal value of shares.
The rate of discount on issue of shares should not exceed _____ % of the nominal value of shares.
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Solution
The correct option is A 10
If a share is issued on a lesser value than the face value of the shares, this is called as shares issued on discount. For example, if the face value of the share is Rs.100 and it is issued at Rs.95, than it is a issued at 5% discount.The maximum rate of discount should not exceed 10% of the nominal value of shares.
If a share is issued on a lesser value than the face value of the shares, this is called as shares issued on discount. For example, if the face value of the share is Rs.100 and it is issued at Rs.95, than it is a issued at 5% discount.
The maximum rate of discount should not exceed 10% of the nominal value of shares.
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