When shares are sold at more than the per value, they are said to have been issued at
Answer Details
When shares are sold at a price that is higher than their nominal or face value, they are said to have been issued at a premium. The nominal value of a share is the minimum value at which it can be issued as specified in the memorandum of association. The premium is the amount paid by the buyer of the share over and above its nominal value.
For example, if a company issues shares with a nominal value of $1 and sells them at $2, the shares are issued at a premium of $1. The premium amount is added to the share capital of the company, and it represents the excess amount that investors are willing to pay for the shares.
The issuance of shares at a premium is a common practice in the stock market. It can help companies raise more capital than they would have been able to with shares issued at par or below par value. This is because investors are willing to pay a premium for shares of a company that is performing well, has good growth potential, or has a strong market reputation.
In summary, when shares are sold at a price higher than their nominal or face value, they are said to have been issued at a premium. The premium represents the excess amount that investors are willing to pay for the shares, and it can help companies raise more capital.