When shares issued at a premium are forfeited, the company can keep the premium amount already received, even after reissue at a lower price. The books get adjusted, but the defaulting shareholder loses everything paid. You see, I learned this the hard way when I defaulted on a call for a few shares of a bank—my initial payment, including that premium, vanished into the company's reserve, yaar. All those ledger entries in my uncle's store couldn't soothe that sting.
#money#career
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