7.15.2008

What do you mean by the term Premium and Discount in a Security Market?

Securities are generally issued in denominations of 5, 10 or 100. This is known as the Face Value or Par Value of the security as discussed earlier.
When a security is sold above its face value, it is said to be issued at a Premium and if it is sold at less than its face value, then it is said to be
issued at a Discount.