What are Premium Issues?

Tata shareMost Companies shares have a face value of Rs.10 though not always offer to the public at this price. Companies can offer a stock (share) with a face value of Rs.10 to the public at a higher price.The difference between the offer price and the face value is called the premium.

For example :

If face value of  Company is 10 and offer price is 100 , its premium is 90

As per the SEBI rules, new companies can offer shares to the public at a premium

Be Sociable, Share!
Tags: , ,

Stock Market Basics For Beginners

Definition for Stock

Definition for Stock The stock of a business entity represents the original capital  invested (paid into) in the business by its founders. The corporation ownership is determined by ...…

Company Fixed Deposits

Company Fixed Deposits Company Fixed Deposits are shortterm (6 months) to mediumterm (3 to 5 yrs) borrowing by firms at a fixed interest rate that is payable monthly, ...…

Invest For Long Time Period And Never Short Time Period

Invest For Long Time Period And Never Short Time Period Invest for Long Time period and never Short Time period : When you determine that your cash can work for you above a long ...…

Intraday Tips For Today

Intraday Tips For Today Nsestocktips.in provide intraday trading tips, daily update share tips , you want share tips on mebile subscribe our special offer plan for more share stock ...…

Balance of Trade

Balance of Trade [ad name="468x15- 5 link"] Balance of Trade (BoT) indicate different in value, in a period of time, between a country’s imports and also exports of ...…

Indian Share Tips

NSE Investment Site

Market Update

Share Guide

Designed by VMV
web
analytics