Week 13 - Issue of Shares at a Premium Flashcards
1
Q
Can shares be issued at a premium?
A
Yes!
2
Q
What does this mean?
A
E.g a share with a nominal value of £1 could be allotted for £1.20 or £2 or £5 if investors are willing to pay that amount
3
Q
How must any amount received by a company as share premium be treated?
A
Any amount received by company as share premium must be kept in a share premium account and then can only be used for certain purposes (detailed in articles)
