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Question
If a share of ₹ 100 is selling at ₹ 125, then it is said to be selling at a ______ of 35.
Options
Discount
Premium
At par
Below par
MCQ
Fill in the Blanks
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Solution
If a share of ₹ 100 is selling at ₹ 125, then it is said to be selling at a premium of ₹ 35.
Explanation:
Market value (₹ 125) is greater than the face (nominal) value (₹ 100), so the share is sold at a premium. The premium = 125 – 100 = ₹ 25.
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