Share premium is the phrase used when shares are issued at a price higher than their face value.
Companies record the total of all the share premium that they receive under a ‘share premium account’ in their financial statements.
For illustration’s sake, if a share of stock has a face value of Rs. 100, and it is sold for Rs. 180, the share premium will be Rs. 80.
Ajay Bohra is an entrepreneur and a financial expert who guides people in their personal finance, investments and real estate. Ajay is passionate about showing people how to make money work for them.
He guides them in the right direction to invest in Stocks, Mutual Funds, Real Estate and other avenues.
Post Disclaimer
Information provided on this website is for Educational & Informational purposes only and is not considered to be advice or recommendation of any kind whatsoever. Anyone who wishes to apply the concept & ideas contained in this shall take full responsibility. Readers should always do their own diligence on any information perceived from this site to form their own opinion and best judgments. Any action you take upon the information you find on this website (letsthinkwise.com), is strictly at your own risk.