A company raises finance by issuing shares to the public at different prices. Shares can be issued at par, where the price is equal to the face value; at a premium, where the price is higher than face value; or at a discount, where the price is lower than the face value. Issuing shares allows a company to generate capital from the public according to the type of share issue.

1. Issue of Shares
Financial Accounting 3

2. Issue of shares
• Raising finance by issuing shares to the
public to generate amount from them
from the share capital of the company,
this process is called Issue of shares.

3. Kinds of Share Issue
Issue of Shares at Par
Issue of Share at Premium
Issue of shares at Discount

4. Issue of Shares at Par
• Shares are said to be issued at par
when they are issued at a price equal
to the face value.

5. Issue of Shares at Premium
• Shares are said to be issued at
premium when they are issued at a
price higher than the face value.

6. Issue of shares at Discount
• When a company issues shares at a
price lower than the face value or
Par value, the shares are said to be
have been issued at a discount.

7. 
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