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What is meant by face value of a share?

Updated: 9/11/2023
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Pulkitagarwal

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16y ago

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The value of the share of stock as it is actually printed on the face of the certificate.

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16y ago
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Q: What is meant by face value of a share?
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What is the minimum price of the share?

it's face value is the minimum price of the share


What is the difference between face value and offer price in IPO?

Face value of a share is the minimum value at which a share must be offered to the public. this represents the intrinsic value of the share. Offer price is the price at which people can buy the share in the market. For example: Reliance power offered equity shares of face value Rs. 10 at around Rs. 430 odd a few months back. (I am not exactly sure of the offer price of Reliance power) 10 is the face value 430 is the offer price


What is the dividend yield of ABC Co Share having face value of Rs100market value of 360 and an annual dividend of Rs10?

Dividend yield = (dividend per share/Market Value per share)*100 = (10/360)*100 = 2.77


What is the difference between Bonus Shares and Shares split?

in case of bonus shares the value of the share decreases proportionate to the number of bonus shares issued. for eg: if company issues bonus shares in ratio of 1:1 and the price of share is 900 , then after bonus issue, the corresponding value of the share gets Rs. 450.genreally company issue this in place of giving dividends.the market captalisation doesnt get affected. as if shares doubles the prices is halved. whereas in split shares the face value of share decreases. generally the face value of share is 10 Rs. but face value can be high. eg: if face value is 100 Rs. then company can split d share in ratio of 100:10. ..now the person holding 100 shares of rs 100 now will hold 1000 shares of 10 Rs each. now shares can be traded more frequently and this will in turn increase the liquidity of the share


What is the meaning of Nominal value of shares?

Nominal Value, Face Value or Par Value of Shares- Value of the Share as indicated on the Share Certificate. This is different from the Market Value of the Sare, which is the actual value of the share and the amount for which it can be bought or sold. The Market Value can be either higher or lower than the Nominal Value, depending on the performance of the company or the economic circumstances of the day. In essence, the Nominal Value of a Share is of little importance and most investors are concerned primarily, if not solely, with the Market Value of the Shares.

Related questions

Face value of a share?

Face value of share is the amount mentioned at face of share which is the basic value at which share is normally issued if issued at par value.


How can the price of a company's share be less than the face value of the share?

How can the price of a company's share be less than the face value of the share?" How can the price of a company's share be less than the face value of the share?"


What is the face value of the share?

Share can have mutliple values at a time. Face value of share is the value written on share document while market value of share is the value at which share is currently selling in capital market. For Example: when a new share issued by company value on share is $10 which is face value. After one year of issue of share, share is selling in market at $12 which is it's market value.


What is the minimum price of the share?

it's face value is the minimum price of the share


What meant by nominal value of shares?

Nominal value of shares refers to the value of share expressed in monetary terms. It is the fixed value of an issued security for the specific year or years without adjusting or inflation. It is also called par value or face value.


What is the difference between face value and offer price in IPO?

Face value of a share is the minimum value at which a share must be offered to the public. this represents the intrinsic value of the share. Offer price is the price at which people can buy the share in the market. For example: Reliance power offered equity shares of face value Rs. 10 at around Rs. 430 odd a few months back. (I am not exactly sure of the offer price of Reliance power) 10 is the face value 430 is the offer price


What is the share premium?

When shares are issued at price which is more than face value then issuance of shares is called issued at premium and that excess amount above face value is called share premium.


Details about dividend policy?

A dividend is nothing but a periodic sharing of profit by the company with its share holders. The dividend is usually declared as a % of the face value of the share. A 100% dividend on a share with a face value of 1$ means you would get $1 for every share of that company you hold.


What is Issue of shares at premium?

Issue of share at premium mean when the share are issue at more than the price of the face value of the share, then it is said to be issue of share at premium. mean: the face value is Rs.10 and the share issue at Rs.12, then the extra Rs.2 is known as the amount of premium...


What is meant by face value on gold coins?

The face value is the original value of the coin, so a very rare penny might be worth £100 but it's face vale is still a penny.


How do you prepare a double entry 4 a share capital and share premium account?

1. When cash received[Debit] Bank/Cash xxxx[Credit] Share application xxxxwhen shares allotted[Debit] Share application xxxx[Credit] Share capital (face value) xxxx[Credit] Share premium [value above face] xxxx


What is the stamp duty on transfer of share certificates in Pakistan?

1.5% of the face value of share scrips and .01% for sripless shares