When a share valued at 50k is issued at #1.59; it is said to be issued at?

A. par
B. premium
C. discount
D. interest

Correct Answer:

Option B – premium

Explanation

Issue of shares at premium means that the issuing of shares above the face value (also called as nominal value or par value). Simply put, when shares are issued at a price higher than the face value, it is said to be issued at a premium.