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Username: Maria

Rating:
Guru Stars

Asked to: Tom Burke

Date Created: 29 Jun 2017
Category 28
Tag Financial
Question What is 'At A Discount'?
Advice from Guru
Hello Maria,

At a discount specifically refers to stock that is sold for less than its nominal or par value. At a discount also refers to stocks or other securities that are sold below the present market value, similar to a sale on goods at a retail establishment.

The nominal or par value for a security, which is detailed in the company charter, is the minimum price that a stock of a particular class can be sold for upon an initial public offering. Most states have laws preventing companies from issuing stock at a price less than par.
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