Business & Finance Stocks-Mutual-Funds

How to Calculate Issuance Price of Common Stock

    • 1). Find the corporation's initial public offering. Sometimes corporations will do this by offering to sell common shares to private financial institutions, other times they will do so on the public market or even offer them online.

    • 2). Determine issue price of common shares by looking at the price that the issuing corporation is selling its common shares.

    • 3). Determine issue price in retrospect by looking at the par values of common shares. This is not a method that works in all cases since not all common shares have par values and not all par values are the same as the issue prices. Read the stock share's terms in order to find out whether its par value is the same as its issue price.



Leave a reply