Stock exchange quoted the shares of ABC Plc at #0.75K for #1.25K per share. This...

Commerce

JAMB 2024

Stock exchange quoted the shares of ABC Plc at #0.75K for #1.25K per share. This means the shares were sold at a

A. par value
B. premium
C. gain
D. loss

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Correct Answer: Option B

Explanation

When shares are quoted at a price higher than their par value or initial offering price, it is considered a premium. In this case, the quoted price of #1.25K per share is higher than the par value or the original offering price, which indicates that the shares were sold at a premium

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