Shares issued below nominal value are referred to as shares at
Answer Details
Shares issued below nominal value are referred to as shares at a discount. This means that the shares are being sold at a price lower than their face value. For example, if a company issues shares with a face value of $1 each, but sells them at $0.80 each, then the shares are being issued at a discount. This can happen for a variety of reasons, such as when a company needs to raise capital quickly or when there is weak demand for its shares. The discount represents a loss to the company, as it is receiving less than the nominal value of the shares. In some cases, shareholders may also see a reduction in the value of their holdings due to the issuance of shares at a discount.