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Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.

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โˆ™ 2011-03-09 01:28:33
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Q: Why are shares issued at a premium?
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Related questions

What is the meaning of issues of shares at premium?

When shares are issued at value which is more than face value then it is called shares issued at premium.


What is shares premium?

When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.


What is the share premium?

When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.


Why shares issued at premium?

In case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share (a) share premium account should be debited (b) share premium account should be credited (c) share premium account should be neither debited nor credited (d) none of these


If forfeiture share is reissued at premium then why security premium is credited?

in case the shares have been issued at a premium and the amount of premium has been received then at the time of forfeiture of such share


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.


What Share premium?

the amount payable for a share above its nominal value. Most shares are issued at a premium to their nominal value. Share premiums are credited to the company's share premium account.


Should bonds issued at a premium always have?

Bonds issued at a premium always have


Can issued shares be split?

This is done, usually, only by the company that issued the shares.


Treasury stock plus outstanding shares would be?

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)


What is a share describe the various types of shares that can be issued by a 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.


What are the types of shares which are issued as bonus shares?

types of bonus shares

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