Question

A share is said to be ______, if its market value is less than its face value.

Options

• At par

• Above par

• Below par

• Premium

Answer 1

A share is said to be below par, if its market value is less than its face value.

Explanation:

When a share’s market value is less than its face (nominal) value, it is said to be below par or selling at a discount.

For contrast: if market value = face value it’s at par; if market value > face value it’s above par/at a premium.