ISSUE OF SHARES (Cash consideration immediately)

ISSUE OF SHARES

The following are two major types of shares to the public.

1)Issue if of shares for full consideration ,Receivables immediately

2) Issue of Shares for consideration, Receivables in installments 

 I.Cash consideration receivables immediately

          A) Issue of shares at Par

                            When a company issues shares at their face value ,it is called issue of shares at par.

 Example: Rs.10 shares are issued at a price of Rs.10, Number of shares= 100

B) Issue of shares at a Premium

                             When a company issues shares at a price which is higher than the face value ,it is called issue of shares at a Premium

Example: Rs.10 shares are issued at a price of Rs.15, Number of shares= 100

C) Issue of shares at a Discount

                        When a company issues shares at a price which is lower than the face value ,it is called issue of shares at a Discount

Example: Rs.10 shares are issued at a price of Rs.9, Number of shares= 100

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