If a share is sold at a price below its face value, it is sold
Answer Details
If a share is sold at a price below its face value, it is sold at a discount.
The face value of a share is the amount stated on the share certificate, and it represents the nominal value of the share. Sometimes, due to various reasons such as poor company performance or market conditions, the market value of a share may fall below its face value. When this happens, the share is said to be sold at a discount.
For example, if a share has a face value of $10 but is sold for $8, it is being sold at a discount of $2. This means that the buyer is paying less than the face value of the share, and the seller is receiving less money than the nominal value of the share.