Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 1 - No. 26)
Ordinary shares are:
They do not have voting rights
Entitlement to receive a “fixed” dividend
Shares at a nominal value typically $1.00 or $0.25 etc.
They may be issued for a price above the nominal value – the extra amount paid is called “share premium”
Explanation
Ordinary shares may be issued for a price above the nominal value.
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