10%
Fully paid shares means that the amount of which shares are fully paid by the investors while shares issued at discount means, share are issued at discounted price from actual face value of asset.
Issue of shares at discountA company may issue shares at a discount i.e at a value below its par value. The following conditions must be satisfied in connection with the issue of shares at a discount :-The shares must be of a class already issuedIssue of the shares at discount must be authorised by resolution passed in the general meeting of company and sanctioned by the company law board.The resolution must also specify the maximum rate of discount at which the shares are to be issuedNot less than one year has elapsed from the date on which the company was entitled to commence the business.The shares to be issued at discount must issued within 2 months after the date on which issue is sanctioned by the company law board or within extended as may be allowed by the Company Law Board.The discount must not exceed 10 percent unless the Company Law Board is of the opinion that the higher percentage of discount may be allowed in special circumstances of case.
If a share has a nominal face value of say $10.00 then if issued at less than $10.00, is said to issued at a discount If issued at $10.00, then issued at par. If issued at more than $10.00 is issued at a premium.
Sweat shares are equity shares issued by a company to employees or directors at a discount. It can also be a reward for an individual's contribution to a project.
when shares aree issued at a lower than the face value they are said to be issue of share at discount. the main reason behind issuing share is to attract retailer
Debentures can be issued at a discount because they are debt instruments, and their issuance terms are more flexible, allowing companies to attract investors even if the initial price is lower than face value. In contrast, shares represent ownership in a company, and issuing them at a discount can undermine perceived value, dilute existing shareholders' equity, and may conflict with legal regulations that typically require shares to be issued at par value. Additionally, issuing shares at a discount may create negative market perceptions and affect the company's overall reputation.
when debentures are issued at discount, it is prudent to write off the discount
when debentures are issued at discount, it is prudent to write off the discount
This is done, usually, only by the company that issued the shares.
Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
A share can be defined as an asset that belongs to an individual or a group of people. The various types of shares that can be issued by a company are Authorized and issued shares. Authorized shares are the ones that a company is allowed to issue while issued shares are the shares that are allocated to shareholders.
When shares are issued at value which is more than face value then it is called shares issued at premium.