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Shares issued below the nominal value are referred to as shares at

Accounts - Principles of Accounts
JAMB 2025

Shares issued below the nominal value are referred to as shares at

  • A. discount
  • B. face value
  • C. cumulative value
  • D. premium
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Correct Answer: Option A
Explanation

Shares issued at a nominal value below the actual value are known as shares issued at a discount. The nominal value (par value) of a share is its face value. When shares are issued at a price lower than this face value, they are said to be issued at a discount.


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