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Market price of share

MMax7y ago
Hi In J 2013 GXG question said that GXG could seek a stock market listing, raising $3·2 million after issue costs of $100,000 by issuing new shares to new shareholders at a price of $2·50 per share. Here $2.5 per share is the nominal value of share or is market price of the share?
John MoffatJohn MoffatTutor7y ago#1
It is the issue price - the price that new shareholders have to pay for the shares.
MMax7y ago#2
Issue price( i.e the price that new shareholders have to pay for the shares) and Current market price of share is the same thing or are they different things?
John MoffatJohn MoffatTutor7y ago#3
Two different things. In your original question, the $2.50 obviously cannot be the market price because they shares have not even been listed yet. Even if they were already listed, then rights issues are issued at a price lower than the market value as you will know from the free lectures.
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