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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Market price of share
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?
It is the issue price – the price that new shareholders have to pay for the shares.
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?
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.