A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Share Discount
(Difference between revisions)
|
|
| Line 1: |
Line 1: |
| - | The amount by which the market value of a [[Share|share]] drops below [[Par Value|par value]]. The par or [[Nominal Value|nominal value]] of a share is an arbitrary figure which is set when a share is first sold or issued. It usually has little or no significance because shares usually trade far above par value. However, share discount to par value can be significant for [[Preference Share|preference share]]s, which pay fixed [[Dividend|dividend]]s based on par value.
| + | A share discount occurs when the market value of a [[Share|share]] falls below its [[Par Value|par value]]. The par or [[Nominal Value|nominal value]] of a share is an arbitrary figure which is set when a share is first sold or issued. It is shown on the share certificate. It usually has little or no significance because shares usually trade far above par value. However, share discounts can be significant for [[Preference Share|preference share]]s, which pay fixed [[Dividend|dividend]]s based on par value. |
Revision as of 21:32, 25 November 2009
A share discount occurs when the market value of a share falls below its par value. The par or nominal value of a share is an arbitrary figure which is set when a share is first sold or issued. It is shown on the share certificate. It usually has little or no significance because shares usually trade far above par value. However, share discounts can be significant for preference shares, which pay fixed dividends based on par value.