- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
PQ Awards Nominations
Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Is issue price of share set according to fair value of share at that time? How is issue price set?
There is no rule. If the shares are being issued so as to be traded on a stock exchange then the company will use advisers to advise on the highest price they are likely to be able to charge so as to be able to sell all the shares. It will depend very much on the forecasts of future profits.
However none of this is relevant for Paper FA. It is not until Paper FM that it becomes relevant.