0
What else can I help you with?
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 ideal Price Book Ratio?
It should not be more than 1.5. If book value is more than price then margin of safety is there. The share price can be higher than book value but not more than 1.5.
Definition of market value per share?
Market value per share can be defined as the price at which stocks are bought or sold. The market value per share is the current price of the stock.
Market value per share or stock price?
Market value should beTotal # of Shares outstanding X Share price
market value analysis?
these ratios calculate market value of a company. companies with higher market value have higher investment potential compared to those with lower market value. the ratios calculated under this analysis are:a) Earnings per shareEarnings per share = Net income / Shares outstandingb) Price earnings ratioPrice earnings ratio = Market price per share / Earnings per share
What is the minimum price of the share?
The minimum price of a share is typically called its "face value" or "par value." This is the nominal value assigned to a share by the company’s articles of incorporation and represents the lowest price at which a share can originally be issued to the public. For most Indian companies, this is often set at ₹10 or ₹1 per share, but the actual face value can vary based on what the company chooses at incorporation. When considering a purchase of 1000 shares, the absolute minimum investment would be: Minimum Investment = Face Value × 1000 Minimum Investment=Face Value×1000 For example, if a share’s face value is ₹10, then buying 1000 shares at face value would cost: 10 × 1000 = ₹ 10 , 000 10×1000=₹10,000 However, the price at which shares are traded in the market—known as the "market price" or "offer price"—is usually much higher than the face value. For example, Reliance Power’s face value was ₹10, but its offer price was around ₹430 per share at the time of its IPO. Thus, the minimum amount required to buy 1000 shares would be based on the current market price, not the face value, except during the initial public offering at face value. In summary: The face value is the minimum price for issuing a share, but market price determines what one actually pays for existing shares. For 1000 shares, the minimum possible price equals face value × 1000, but in practice one usually pays the prevailing market price.
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
How do you calculate market value of a company?
Market Value of a company = No. of outstanding shares * Market price per share Assuming there are 100,000,000 share of XYZ limited and its price per share is $25, the market value of the XYZ limited is $ 2,500,000,000/-
Why does the market price of outstanding issues often vary from par?
There is no correlation between PAR and MARKET PRICE . Par value was the assigned value of a share when the company was set up. There can be par value shares and no par value shares. After the first second, the value of that share has changed from the time it was identified as a share or issued as an outstanding share.
What is the price of a share in a mutual fund?
The price investors pay for a share of the company is based primarily on the market value of the securities in the portfolio
How do you get percent from higher value to lower value?
if my price is 52.00 and I am told that I am 180 percent higher. How do I find the lower value
Why is the goal of financial management to maximiize the current share price of the company's stock in other words why isn't the goal to maximize the future share price?
Maximizing the current share price is the same as maximizing the future share price at any future period. The value of a share of stock depends on all of the future cash flows of company. Another way to look at this is that, barring large cash payments to shareholders, the expected price of the stock must be higher in the future than it is today. Who would buy a stock for $100 today when the share price in one year is expected to be $80?
