Shares represent ownership stakes in a company and are a fundamental component of its capital structure. When a company issues shares, it can do so in several ways. Shares issued at their face value, known as "issue of shares at par," are typically sold for an amount equal to their nominal or stated value. Sometimes, companies may issue shares at a price lower than the face value, creating a "discount." Conversely, if shares are issued at a price higher than their face value, it results in a "premium."
The format of the accounting equation is given below.
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