Face Value

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Face Value

Meaning:

Face value, or par value, refers to the original value of a share or bond as determined by the company at the time of issue. It is printed on the share certificate and

remains constant unless the company undergoes a stock split or consolidation.

Example:

For instance, if a company issues a share with a face value of ₹10, that ₹10 serves as the base value for accounting and corporate decisions.

How to understand Face Value:
Face value is important for calculating dividends, which are payments made to shareholders.

It is also used in bond interest calculations, determining how much interest is paid to bondholders.

Importance of Face Value:

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Disclaimer

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Face Value

How to understand Face Value: Face value is important for calculating dividends, which are payments made to shareholders. It is also used in bond interest calculations, determining how much interest is paid to bondholders. Importance of Face Value:

Face value helps determine the share capital on the balance sheet and plays a role in pricing during an IPO. .

How to understand Face Value:
Face value is important for calculating dividends, which are payments made to shareholders.

It is also used in bond interest calculations, determining how much interest is paid to bondholders.

Importance of Face Value:

Face value helps determine the share capital on the balance sheet and plays a role in pricing during an IPO.

.