Accounting for Issue of Ordinary Shares.
Share buybacks: can a company buy back its shares at a price which is less than the nominal value of the shares? Practical Law Resource ID 2-523-6450 (Approx. 2 pages) Ask a question Practical Law may have moderated questions and answers before publication. No answer to a question is legal advice and no lawyer-client relationship is created between the person asking the question and the person.
Definition: Nominal value, also known as face value or par value, is the stated price written on front of a security, usually a bond or stock. For a bond or preferred stock, this is the redemption price or the amount of money that the bondholder will receive at maturity.
The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is.
The nominal value is the face value of the shares. It is also the minimum amount that must be paid for shares. The aggregate nominal value is the number of shares issued multiplied by the nominal value of each share. 7.8 What is the 'Total aggregate value of shares'? Within each currency this should be the number of shares multiplied by the.
The law just says that the shares must have a fixed nominal amount, denominated in either sterling or euros. Obviously, everybody uses software these days (including Companies House) that needs to have parameters to cope with the situations it encounters in real life (but doesn't bother catering for the moronic), and therein, I suspect, lies your problem.
Nominal Value: Shares cannot be issued at a price lower than their nominal value. If the shares are worth less than their nominal value, either the existing share capital will have to be restructured with a lower nominal value, or; a new class of shares will have to be issued; The company can issue the shares at a premium i.e. above the.
The maximum value of securities the company can legally issue is the nominal share capital. A company can, at a later date, increase the nominal share capital through a vote by the current shareholders. Increasing the number of shares raises additional capital for the company, but additional capital also can decrease the value of the current shares.