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!!?
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