Q.State whether the following statement is True or False:
Shares are always issued at par.

Face value ₹100 and issue price ₹110 means the shares are issued at a premium of ₹10 per share.

Shares can be issued in three ways relative to their face (nominal) value:

• At par — issue price = face value.
• At premium — issue price is more than face value; the excess is the premium.
• At discount — issue price is less than face value. …

A company may issue shares at par, at premium or at discount. 'At loan' is not a mode of share issue, so it is the odd one out.

Modes of issue of shares by their price

Shares may be issued at par, at a premium or (subject to legal conditions) at a discount, so the statement is false.

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