Kerala Banking

What is a Face value of a Share?

Face Value (par Value) of Share

All companies issue shares with a fixed denomination called the face value (or par value) of the share. This face value be indicated on the share certificate. Generally Indian shares has a face value of Rs. 10/-

 

Difference between Face Value and Market value

A face value has no relation with the market value of the share. Market value of the share will always change depending upon the market conditions.  But the face value is a fixed value of the share as per the books of the company.

Split the face value of the share

A Face value or par value of the company share always remains the same, irrespective of the market price of that share. Companies have to right to split the face value of the share to Rs. 5, 2 or 1 to bring more volatility to the share.

 

 

Related Topics

What is a Share or Stock?
What is Face Value of a Share?
What is the Risk of Investing in Shares?
How to become a Successful Investor?
Guide for Stock Trading in India NSE & BSE ( NIFTY & SENSEX )
Basics for Online Trading in India
What are Bonus Shares?
What is Rights Issue of a Share?
Indian Online Stock Market Trading
Market Timing of Indian Stock Markets
Online Banking & Online Investments in India
Online Trading Brokers in India
DEMAT Shares : Shares in Electronic Format
How to Pick Profitable Stocks?
What Is Capital Gains Tax?
Market Trading Hours
Pre-Open Trade
Indian Stock Market Holidays
What is Put & Call?
What is STT?

 

 

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