The nominal value of kC Ltd's share is 50k and the market value is 70k. This means that the company's shares are selling
Question 1 Report
The nominal value of kC Ltd's share is 50k and the market value is 70k. This means that the company's shares are selling
Answer Details
The nominal value of a share is the original value assigned to a share by a company when it is issued. On the other hand, the market value is the current value of the share in the stock market.
In the given scenario, the nominal value of kC Ltd's share is 50k while the market value is 70k. This means that the shares of the company are selling at a higher value than their nominal value, indicating that they are in high demand.
When the market value of a share is higher than its nominal value, the share is said to be trading at a premium. Therefore, the correct answer is "at premium".
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