Shares are always issued at par.

Question

State, whether the following statements is True or False. 

Shares are always issued at par. 

Options 

True 

False

Answer 1

False 

Explanation: Shares can be issued at par, at discount or at premium. It is not necessary that shares should be issued at par. They can be issued at below the face value, i.e. at a discount, or above the face value, i.e. at premium.