Please Wait ..

to your account


Remember Me

Forgot your password?

Sign-up now

Join and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.

Discussion > Accounts > A/c entries >

Discount on shares

    Post New Topic
Pages : 1

Related Files


[ Scorecard : 190]
Posted On 05 February 2013 at 00:00 Report Abuse

What can't a company issue shares at a discount unless it is a reissue? What is the logic behind it?

Online classes for CA CS CMA

Share on

Jag Bhushan Sharma
Faculty in a B-School

[ Scorecard : 602]
Posted On 07 February 2013 at 05:08

The logic behind the law that a company cannot make the first issue of shares at a discount is:

1. This means that the project from the very beginning is not viable, then why start it and risk investors money.

2. Dishonest promoters may issue shares to themselves at discount and later on issue shares to general public at par or premium, making unreasonable gain for themselves.

     I am attaching a link of videos on Accounts.  Feedback/suggestions are most welcome.

Total thanks : 1 times

There are 1 Replies to this message

Related Threads

Post your reply for Discount on shares

Your are not logged in . Please login to post replies

Click here to login

Not a member yet ?? Click here to signup



  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.

Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top