Issues of Shares and Debentures

When a company issues shares or debentures, one of the following three (3) scenarios might occur:

• Issuance AT PAR
• Issuance AT A PREMIUM
• Issuance AT A DISCOUNT

Scenarios	Meaning
Issuance AT PAR	A share or debenture of (say) $1 each nominal value would be issued for $1 each.
Issuance AT A PREMIUM	At a premium a price above the share’s nominal value. For example, if the nominal value of a share is $1, the share would be issued for more than $1, say for $1.10 or a $100 debenture for $120
Issuance AT A DISCOUNT	Shares of $1 each might be issued at say $0.90 which is below its nominal value