Question

lf shares are issued at its face value, it is called as issue at ________. (Fill in the blank by choosing correct option)
(a) premium
(b) discount
(c) par
(d) none of these

Answer 1

Answer:

PAR

Explanation:

lf shares are issued at its face value, it is called as issue at  PAR

lf shares are issued more than face value then its calles issued at Premium.

Market Value - Face Value = Premium

lf shares are issued less than face value then its calles issued at Discount

Market Value = Face Value - Discount

lf shares are issued at its face value, it is called as issue at PAR

Face Value = Market Value

Answer 2

Answer:

Answer is given in the option (c):par

Explanation:

If shares are issued at its face value, it is called an issue at PAR.

There are three types of them,  

1. Issued at Par

2. Issued at Discount

3. Issued at Premium  

As we know, Market Value = Face Value

So, If shares are issued at its face value it's called issued at PAR.

If shares are issued more than at its face value then its called issued at premium.  (Market Value - Face Value = Premium)

If shares are issued less than at its face value than its called issued at discount. (Market Value = Face Value = Discount)