Question

Issue of share above face value. Answer in a word / phrase / term.

Answer 1

Hey mate ✌️✌️


Issue of share above face value⤵️⤵️⤵️


(Premium shares)

Answer 2

Issue of shares at a price above the face value of the share is known as a premium offer.

• The issue of premium shares refers to shares being issued at a price higher than the share's face value. In other words, the premium is the amount that exceeds a share's face value.
• Companies that are financially strong, well-managed and have a good market credibility issue their premium shares. For example, if a company issues a share of nominal or face value of Rs.10 at Rs 11, then it will issue it at a premium of 10 percent.
• At any stage, a company may call the applicants or shareholders ' premium amount, which means at the time of application, allocation or calls. However, at the time of allocation, a company usually calls the amount of premium.