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Issue of shares at par - Shares are said to be issued at par when they are issued at a price equal to the face value. For example if the face value of a share is $100 and issue price is also $100 than the share will be said as thae share has been issued at par.

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Q: What is the meaning of issue shares at par?
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What is the meaning of shares at par?

Issue of shares at par - Shares are said to be issued at par when they are issued at a price equal to the face value. For example if the face value of a share is $100 and issue price is also $100 than the share will be said as thae share has been issued at par.


What does Capital Stock 5000 shares-no par value mean?

Par value, sometimes referred to as maturity value is the face value of a stock certificate or bond and sets the price below which the security will not be issued. In the case of a bond, it is the principle amount that is due at maturity or call. In the case of a company's stock, the par value has no relation to the market value of the security and is typically set at $0.01 or $0.001 for US companies (though they can also issue no par value shares). Federally incorporated Canadian companies by contrast can only issue no par value shares. Provincially incorporated companies can issue shares with a par value which can be helpful in tax planning, estate freezes and unique preferred share issues. So the short answer to your question is that the 5,000, simply denotes how many shares you have, but the "no par value" part is for all intents and purposes irrelevant and only means that the shares were initially created with no par value. It's an aspect of the shares that's really only relevant to the company's accountants.


What is the Formula for Average issue price per share of preferred stock?

[(# of shares authorized X par value) + additional paid in capital] / # of shares issued


Meaning of share application?

A request for shares in a SHARE ISSUE(=when shares in a company are sold for the first time)


The journal entry to issue 1000000 shares of 5 dollars par common stock for 7dollars per share on January 2nd would be?

debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000


Where shares without par value?

The No-Par value shares are those whose prices are determined by whether the investors want to pay for them or not.


Do shares in Australian company come with a par value?

No, Australian companies do not have a par value (or nominal value) for their shares. The concept of par value was abolished by law in Australia in 1998.


What is par value shares?

If a share costs 95 pence to buy, then that is its par value.


What is meant by no par value shares?

"No Par Value Shares" are a relatively new phenomenon.It literally means that the shares of stock in a company do not have a "Par Value". Please read this entire response as electing to form a company using "No Par Value" shares can create significant tax issues (assuming you are a start-up planning to raise outside capital, but the issue can exist even if this is not your situation).Par Value for Stock is an archaic concept. In "olden" days, companies used to issue (sell) shares of common stock at Par Value, a price below which no other shares could be sold (by the company, secondary sales are a different matter). Back when securities markets were not well regulated, this approach was intended to protect the purchaser and provide a simple accounting method as the par value per share times the shares sold was equal to the amount raised, which appeared on the balance sheet as Paid in Capital or Contributed Capital.Using Par Value can be avoided, but likely should not be. Most states, including Delaware, allow you to form a corporation with "No Par Value" shares, meaning you do not need to assign a Par Value to the stock. It can make the accounting and paperwork a little easier, but we do not recommend going this route because there are potential tax implications (Delaware Franchise Tax for instance), and since Par Value has been used "forever", most legal and accounting materials factor it in already so the idea it can make this stuff easier is debatable. Over time as "No Par Value" becomes more common we expect it will be better to take this approach, but our basic view here is that if it "ain't broke, don't fix it", and Par Value may be archaic, but it ain't broke.Make sure to consult with a good corporate attorney on this and ask them about the tax issues mentioned above.


What is the entry for forfeiture of shares?

Forefiture of shares issued at par:-Share capital A/c Dr.To share allotment A/cTo Share Call A/cTo share forfeiture A/c(Forfeiture of shares issued at par)


How many shares is cayman corporation authorized to issue and how man shares must be to comply with the minimum requirement?

Problem: Cayman corporation is to be formed with authorized capital stock of 100 pesos with par value per share at 50 pesos.


What do you understand by issue of shares at premium par discount?

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.