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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.
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