Capital Market Interview Question:

What is the minimum application if equity shares are being issued at par?

Submitted by: Administrator

Minimum application which is required if equity shares are being issued at par is that the company should have a nationwide trading terminal for the duration of at least 1 year. The other applications which are necessary for doing this are as follows:

1. Issue of prospectus: For a company to raise capital by issue of shares for public requires the public to accept the offer to buy shares

2. When the prospectus is being read by the public then according to the public satisfaction they can apply to company for purchase of the company's share.

3. When the shares are used through cash then the issued at par share can have the discounted and this can be payed either in lump sum along with the application or in installments at different stages.

4. Issues are at par when their price is equal to the face value. For example if share is of Rs. 30 is issued at Rs. 30 then it is been said that they have been issued at par.
Submitted by: Administrator