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

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