BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Issued at Premium
|
|
|
Issued at Par
|
|
|
Issued at Discount
|
|
|
All of the Above
|
Detailed explanation-1: -And of course, shares sold at discount cost less than the face/nominal value. This means that when shares are issued at the face value means when the issue price is equal to the face value then it is called as the issue of shares at par.
Detailed explanation-2: -Face value is the nominal value or dollar value of a security stated by the issuer, also known as “par value” or simply “par."
Detailed explanation-3: -If, when a company issues a new bond, it receives the face value of the security, the bond is said to have been issued at par. If the issuer receives less than the face value for the security, it is issued at a discount.
Detailed explanation-4: -When the shares of a company are issued more than its nominal value (face value), the excess amount is called premium.
Detailed explanation-5: -A financial instrument’s par value is determined by the institution that issues it. The par values of stocks and bonds were printed on the faces of the shares when they were printed on paper. Market value, on the other hand, is the current price at which a financial instrument can be traded on the stock market.