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When shares are sold at less than the nominal value, it means they are issued...

Accounts - Principles of Accounts
JAMB 2025

When shares are sold at less than the nominal value, it means they are issued at

  • A. a premium
  • B. par
  • C. a loss
  • D. a discount
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Correct Answer: Option D
Explanation

When shares are sold for less than their nominal (par) value, they are said to be issued at a discount. The nominal value is the face value stated in the company’s constitution. This typically occurs when a company requires immediate funds or struggles to attract investors.


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