Share Discount


Share Discount
   The amount by which the market value of shares drops below par value. The par or nominal value of a share is an arbitrary figure which is set when a share is first sold or issued. It usually has little or no significance because shares usually trade far above par value. However, a share discount to par value can be significant for preferred shares, which pay fixed dividends based on par value.
   ► See also Par Value, Preference Share.

Financial and business terms. 2012.

Look at other dictionaries:

  • discount share — n: a share of corporate stock issued at less than par value Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • share premium — Under the Companies Act 1985, if the amount paid to the company on subscription for the issue of shares is greater than their nominal value, the surplus is called share premium. The aggregate of the share premium is transferred in the company s… …   Law dictionary

  • discount — a deduction made from the normal cost or purchase price. Glossary of Business Terms 1) Quality differences between those standards set for some futures contracts and the quality of the delivered goods. If inferior goods are tendered for delivery …   Financial and business terms

  • Discount — Referring to the selling price of a bond, a price below its par value. Related: premium. The New York Times Financial Glossary * * * ▪ I. discount dis‧count 1 [ˈdɪskaʊnt] noun [countable] 1. COMMERCE a reduction in the cost of goods or services… …   Financial and business terms

  • Discount rate — For the interest rate charged to banks for borrowing short term funds directly from the Federal Reserve, see discount window. For the fees charged to merchants for accepting credit cards, see Discount Rate under Merchant Account. For discount… …   Wikipedia

  • Discount store — A typical Wal Mart discount department store. A discount store is a type of department store, which sells products at prices lower than those asked by traditional retail outlets. Most discount department stores offer a wide assortment of goods;… …   Wikipedia

  • share issued at a discount — A share issued at a price (the issue price) below its par value. The discount is the difference between the par value and the issue price. It is illegal to issue shares at a discount in the UK …   Accounting dictionary

  • share issued at a discount — A share issued at a price (the issue price) below its par value The discount is the difference between the par value and the issue price. It is illegal to issue shares at a discount in the UK …   Big dictionary of business and management

  • share option — stock option 1) A benefit sometimes offered to employees, especially new employees, in which they are given an option to buy shares in the company for which they work at a favourable fixed price or at a stated discount to the market price. An… …   Big dictionary of business and management

  • share broker — A discount broker who charges per share> traded, and reduces the per unit charge as the number of shares traded increases, as opposed to a dealer who charges a percentage of the dollar amount of the trade. Bloomberg Financial Dictionary …   Financial and business terms