Stock exchange quoted the shares of ABC Plc at #0.75K for #1.25K per share. This means the shares were sold at a
Answer Details
When shares are quoted on a stock exchange, it signifies the price at which the stock is available for purchase. The problem provides two prices regarding the shares of ABC Plc:
#0.75K - This is the par value of each share. The par value is a nominal or face value of a share when it is initially issued. It is the minimum price that the company has set to start with.
#1.25K - This is the price per share at which these shares were sold in the market. When the selling price is higher than the par value, it means the shares were sold at a premium.
In this scenario, since the selling price (#1.25K) is higher than the par value (#0.75K), the shares were sold at a premium. Therefore, the stocks of ABC Plc were sold for more than their face value, which indicates that investors were willing to pay more than the nominal value for those shares, typically due to the company's perceived potential or existing market demand.