Shares are said to be sold at a discount when they are sold

JAMB Commerce 2024 126 views
Source: JAMB · 2024

Shares are said to be sold at a discount when they are sold

  1. above par
  2. at par
  3. below par ✓
  4. to the public
Explanation

Par value is the face value of a share. Selling below par means selling cheaper than face value.

If a share has par value of ₦10 but sells for ₦8, it is sold at a discount.

Selling above par is called selling at a premium.

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