what is a. share discount. in detail
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what is a. share discount. in detail
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Explanation:
Definition:
A discount on stock occurs when the stock's par value is higher than the issuing price. The difference between the greater par value and the lesser issue price is considered the discount. This represents the amount of the par value that investors were unwilling to pay for when the stock was issued.
Answer:
when a share is issued by the company at a price less than the face value of the share then the share is to be issued at discount.the diff. between the par value of the share and the amount received on share is known as share discount