Share premium

[#1]

Can anyone explain what gives rise to a share premium. dutch

[#2]

If a share at its IPO is say 100 and at close of business it last traded at 110 - that 10c difference in price is said to be at a premium as it is now more expensive than its initial price..

[WES]

Share premium is when a share is issued for more than its par value, but since the new companies act came into being on the 3rd May, its s*****ped par value shares, therefore, no more share premium.

[#4]

Nothing to do with its current price. If the shares are R1 par value shares and are issued for R100 each the share premium is R99 and the share capital R1. It makes no difference what price they are subsequently traded at only what they are issued for.