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Post Info TOPIC: ICB Level 111 manual exam
remington


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ICB Level 111 manual exam
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Hi everyone

Just wondered if anyone can help with my studies?  I am studying share issues at the moment and the question I have is: Why would a company make a share issue above par value of the shares and for what reason?

Thanks for your help

Remington

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Remington
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Basically to maximise the cash injection into the company and also to reflect the open market value of the shares.

I guess it's back to supply and demand, investors will be willing to pay more for shares in a Company because of the anticipated return but the par value is likely to be restricted by the original Articles and Memo e.g if all the original authorised share weren't issued.

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Tony

Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
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remington


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Hi Tony

Thanks very much for your reply, I understand the question now, it makes things a lot clearer.

Thanks again

Remington

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Remington
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