Question

Which of these types of shares cannot be issued at discount?

• A. New class of shares
• B. Preference shares
• C. Shares with differential dividend
• D. all of the above

Answer 1

The correct option is A New class of shares

When Shares are issued at a price lower than their face value they are said to have been issued at a discount.

Shares can be issued at discount subject to the following conditions:

(a) The shares must belong to a class already issued.

(b) Discount rate should not be more than 10%.