All About Face Value of Share
The face value of a share, also known as its nominal value or par value, is the original cost of the share as stated on the share certificate. Here are the key points about the face value of a share: Definition : The face value is the value at which a share is issued initially. It is the minimum value of the share as stated in the company’s charter or memorandum of association. Purpose : It represents the capital paid into or the amount that must be paid by the shareholder. It is used to calculate the dividend or interest that may be paid to the shareholders. Common Values : In many countries, face values can range from very low (e.g., $1, $0.10) to higher values depending on the company's requirements. In India, for instance, common face values are ₹10, ₹5, ₹2, and ₹1. Market Value vs. Face Value : The market value of a share is the current trading price on the stock market, which can be significantly different from its face value. The market value fluctuates based on supply and...