The Par Value of Shares in a Particular Company Is

question 12

Multiple Choice

The par value of shares in a particular company is 100p. The price received by the company for the shares is 400p. What is the difference in value (300p) called?

• A) Share value
• B) Shareholder premium
• C) Ordinary share capital
• D) Authorised share capital value

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Definitions:

Cash Dividend

A payment made by a company to its shareholders, usually as a distribution of profits in the form of cash.

Common Stock

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Noncumulative Preferred Stock

A type of preferred stock for which missed dividend payments are not accrued and must be declared by the board to be paid.

Common Stock

A kind of ownership stake in a company that allows holders to participate in voting on company issues and to earn dividends.