Solved

A Premium on Ordinary Shares

Question 119

Multiple Choice

A premium on ordinary shares:


A) Is the amount paid in excess of par by purchasers of newly issued shares.
B) Is the difference between par value and issue price when the amount paid is below par.
C) Represents profit from issuing shares.
D) Represents capital gain on sale of shares.
E) Is prohibited in most states.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents