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  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • August 20, 2020 at 9:27 am #581265
    Avatarmichaelsamiotis
    Participant
    • Topics: 47
    • Replies: 27
    • ☆☆

    Hello sir,

    can I ask please why a company might sell newly issued shares at a higher price and not issue the new shares (par value) at a higher price ? Thank you

    August 20, 2020 at 3:15 pm #581293
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    If a company has already been making profits and investors expect it to do well in the future, then they will be prepared to pay more than the par value for the new shares.

    August 20, 2020 at 3:22 pm #581296
    Avatarmichaelsamiotis
    Participant
    • Topics: 47
    • Replies: 27
    • ☆☆

    Thank you for your reply. My question is why the new shares aren’t issued in a bigger price? Thank you

    August 20, 2020 at 5:05 pm #581317
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    But they normally are issued at a higher price as I explained in my previous answer (and as I explain in my free lectures).

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