Question

When is a share said to be at a premium?

विकल्प

• When \( \text{MV} = \text{FV} \)

• When \( \text{MV} > \text{FV} \)

• When the dividend is distributed among shareholders

• When \( \text{MV} < \text{FV} \)

Answer 1

A share is at a premium when Market Value is more than Face Value (MV > FV). When MV = FV the share is at par, and when MV < FV it is at a discount.