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No, ordinary shares generally cannot be issued at a price lower than their par value. Issuing shares below par value can lead to legal and financial complications, as it may violate corporate laws and could be considered detrimental to existing shareholders. Companies are typically required to issue shares at or above par value to protect the equity structure and maintain solvency. However, some jurisdictions may allow for specific exceptions or mechanisms to address this issue.
What else can I help you with?
Difference between fully paid shares and shares issued at discount?
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.
What is redeemable shares?
These are special shares that you get with ordinary shares from some companies, which they buy back off you at a price instead of paying a dividend.
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 is the price per share?
facebook is a private company-no shares issued
What is the meaning of issue 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.
Why Ordinary shares as a source of finance?
Well........... Unlike other forms of shares the actual dividends that are paid on ordinary shares will rely on the size of the profit actually made by the company and then the share price can go up or down, and depending on this price depends on how much shareholder gets when he/she sells their shares.
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 selling price per share?
facebook is a private company-no shares issued
What is the definition of shares?
From Investopedia: A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire
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.
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
What is the definition of right share?
From Investopedia: A security giving stockholders entitlement to purchase new shares issued by the corporation at a predetermined price (normally less than the current market price) in proportion to the number of shares already owned. Rights are issued only for a short period of time, after which they expire
