Explain the following terms in relation to issuing of shares. (I) At par. (II) At premium. (III) At discount. – NABTEB QUESTION

(i) Issuing shares at par: This means that the amount a shareholder pays for a share will actually appears on the share certificate. Share used at the normal value.

(ii) Issuing share at premium: This means that a shareholder will pay more than what it appear on the share certificate. This means the face-value of the share is lower than what a shareholder pays. Selling of shares above the par value.

(iii) issuing share at discount: This means that the amount written on the share certificate is higher than what the shareholder pay. Selling of shares below the par value .