CB1 FLASHCARDS PAGE 87

Discussion in 'CB1' started by HARIHARAN.S, Mar 7, 2019.

  1. HARIHARAN.S

    HARIHARAN.S Member

    hello!!
    In the flashcards of chapter 4, (page 87 of main features of ordinary share capital), the last line is given as the issue price cannot be lower than par value. i am confused this with shares issued at discount. can anyone help me out!!?
     
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    Hi

    Referring to page 14 of chapter 4 should help clarify this:

    Companies are not allowed to issue shares below the par value. However partly paid issues (shares where the investor is committed to make a further payment of capital to the company at a later date) are allowed.

    Hope this helps!
    Lynn
     
    Divas Thareja likes this.
  3. HARIHARAN.S

    HARIHARAN.S Member

    yea, tanq so much.
     

Share This Page