Issue of SharesFinancial Accounting 3

Issue of shares

• Raising finance by issuing shares to the public to generate amount from them from the share capital of the company, this process is called Issue of shares.

Kinds of Share Issue

Issue of Shares at ParIssue of Share at PremiumIssue of shares at Discount

Issue of Shares at Par

• Shares are said to be issued at par when they are issued at a price equal to the face value.

Issue of Shares at Premium

• Shares are said to be issued at premium when they are issued at a price higher than the face value.

Issue of shares at Discount

• When a company issues shares at a price lower than the face value or Par value, the shares are said to be have been issued at a discount.

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