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Price per Share

How to Determine the Price per Share when Issuing New Shares After Incorporation

Written by Jordan Casey
Updated over a week ago

The price per share is the amount the individual receiving the shares must pay the corporation for each share they receive. 

How to determine a price per share?

The price per share should reflect the fair market value of the shares in conjunction with the value of the company. This can be done through a formal business valuation or an inferred valuation. 

In some cases, the price can be set based on a recent event - like another share issuance. Also, if your company has a shareholder agreement, this should be reviewed, as it may contain information on how to calculate the price of shares. 

Recommended to Consult with an Accountant

It's recommended that you consult with an accountant in order to determine the appropriate price per share and determine any tax implications. 

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