Which statement is true regarding a company's share issuance?

The true statement regarding a company’s share issuance is that a company can issue shares at both a premium and a discount. This means that a company can choose to issue its shares for more than their nominal value (premium) or less than their nominal value (discount), subject to certain legal regulations and restrictions.

Issuing shares at a premium often reflects the market's perception of the company's value or the demand for its shares, while issuing at a discount can help raise capital quickly if the company is in urgent need of funds. However, it is important to note that many jurisdictions impose specific rules regarding these practices to protect shareholder interests and ensure that the company maintains appropriate capital levels. For example, companies may be permitted to issue shares at a discount only under certain conditions, and usually, specific legislative compliance is required to do so.

This understanding clarifies that options stating a limitation on the company's ability to issue shares—whether at only a premium or only at a discount—are not accurate. A comprehensive view shows that there are scenarios permitting both practices, with adherence to governing laws.