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WAEC Commerce 1995 Question 43

Question 43

Stock Exchange

The nominal value of share of a public limited company is 50k and the market value is 65k. The company's share is selling

  1. A.above per value
  2. B.at per value
  3. C.below per value
  4. D.ex dividend
  5. E.cum dividend
Show the answer and explanation

Answer: A (above per value)

Explanation

When the market price is more than the nominal (par) value, the share is selling above par (at a premium).