JAMB - Accounts Principles Of Accounts (2025 - No. 4)

Shares issued below the nominal value are referred to as shares at
discount
face value
cumulative value
premium

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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