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Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.
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.
raise capital
No. Every public issue of shares has to be followed by listing in an organized stock exchange.
Companies have three choices when they want to raise money to grow their business: to borrow from a bank, issue bonds or issue shares. The key advantage of issuing shares is that the company doesn't need to pay back the capital amount or make interest payments. Funds received from the selling of shares are used by the business to expand and finance projects etc.
Companies who are in the market from long period of time can issue shares at discount.
Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.
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
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.
preliminary expenses, discount on issue of shares
raise capital
Co operative companies give shares to their workers, so as you work for the company, shares are given out. Sometimes these companies will give more shares the longer you work for them. Limited liability companies issue shares either on the sotck market, where anyone can buy them, or to those inside the company themselves.
No. Every public issue of shares has to be followed by listing in an organized stock exchange.
issue is the companies issuing shares to the public. An allotment process is whereby the shares which have been applied for by the public are allotted to the share applicants in the percentage holding of the company that they have applied for
to raise the companies' cash. To buy, maintain equipment and so on.
Companies have three choices when they want to raise money to grow their business: to borrow from a bank, issue bonds or issue shares. The key advantage of issuing shares is that the company doesn't need to pay back the capital amount or make interest payments. Funds received from the selling of shares are used by the business to expand and finance projects etc.
no private company can not issue prospectus since they are prohibited from issuing their shares to public, and it can only solicit for their capital through private sources