Stock exchange quoted the shares of ABC Plc at ₦0.75K for ₦1.25K per share. This means the shares were sold at a

JAMB Commerce 2024 123 views
Source: JAMB · 2024

Stock exchange quoted the shares of ABC Plc at ₦0.75K for ₦1.25K per share. This means the shares were sold at a

  1. gain
  2. loss
  3. par value
  4. premium ✓
Explanation

When shares sell above their original price, they are sold at a premium. Here shares worth 75 kobo sold for N1.25.

Par value means selling at the original price. At discount means selling below original price.

Premium shows investors believe the company will perform well.

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