Issue of shares

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Issue of Shares Financial Accounting 3

description

Issue of share at par, at premium and at discount is discussed in the presentation

Transcript of Issue of shares

Page 1: Issue of shares

Issue of SharesFinancial Accounting 3

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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.

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Kinds of Share Issue

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

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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.

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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.

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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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