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Ordinary shares

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Ordinary shares

  • This topic has 1 reply, 2 voices, and was last updated 12 months ago by John Moffat.
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  • July 10, 2024 at 3:25 am #708145
    Syed Ahsan Ali
    Participant
    • Topics: 136
    • Replies: 85
    • ☆☆☆

    Are these true that:

    1. A company can choose whatever issue price it wants for their shares to be issued in the stock market but it got to be less than nominal price?

    2. IF a company chooses to issue shares at a higher issue price than nominal value then the extra is called share premium?

    3. Issue price is also called strike price that is decided by the company when it issue shares?

    4. How do you define me the difference between issue price and market price?

    5. When a company is dissolved the real worth of the business is whatever market value of the shares that are called market capitalization. The buyer will see the market value of the shares of the company?

    6. What is share discount term mean. Does that mean that shares are issued at a issue price lower than the market price of a share?

    Thanks ?

    July 10, 2024 at 8:26 am #708147
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    These question relate more to Paper LW than to Paper FA and you should ask them in the Paper LW Ask the Tutor Forum.

    If you are studying for Paper FA then our free notes and lectures cover everything needed to pass that Paper well.

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