Stock price in market

This query is : Resolved 

19 September 2013 Dear Freinds
if Balance sheet shows share cap Rs. 100,00,00,000. Qty 1,00,00,000 at the FV of 10/- per share and
Share premium Rs. 450/- per share of Rs. 1,00,00,000 = 4,50,00,00,000

the Market price of Stock is Rs. 2100/-

now i want to know whether the Price movement in Stock Market does affect the Stock price in Balance Sheet

what is the benefit of Share price which is high in the Market




19 September 2013 It will effect on your investment in other company in which you have made. then there shares will covered under quoted shares or un quoted shares. Then you will show it in BS under non current investments and it increase your value of investment.

19 September 2013 what about my own companies stock price is higher than FV

i have transfered whatever i got at the time of ipo over n above the FV

but today in the stock market, my Stock price is 2100/-

should i increase my Sh. Premium amount is my book as on last day of the book

or does the price of stock price in stock market will affect my Balance Sheet


19 September 2013 On the basis of market price you can not change your securities premium account.

However, you can make fresh allotment to new investors at such price which will affect your such premium account.

It will not affect your balance sheet.

19 September 2013 Should a company keep a watch on stock price at the market

should i have to change the Balance sheet according to the new stock price in stock market

or just ignore the sotck price till new shares issued or winding up or back loan application

19 September 2013 Market price is required for valuation of company in maret for fresh issue, merger, amalgamation etc.

It is only for valuation purpose.

19 September 2013 Company need not pay any amount to shareholder till merger/amalgamation/closure

Share holder amount will not change unless change is reserves

is it correct

19 September 2013 It will not change, you will always show it on face value.

Otherwise your reserve and surplus will fluctuate on daily basis.




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