What Is Face Value Of A Share With Example?

What does it mean to take something at face value?

1 : for the price that is printed on something We bought the tickets at face value.

2 : as true or genuine without being questioned or doubted After all his lying, nothing he says now should be taken/accepted at face value..

What is face value and premium of share?

Share premium is the amount received by a company over and above the face value of its shares. Face value of a share is its value that is printed on the share certificate. For example, face value of a $1 share is one dollar. … It does not arise when the “investor” sells shares at a price greater than face value.

What is the minimum face value of a share?

company. The companies are incorporated with INR 10 face value (most of them), INR 100 or INR 1. SEBI, which governs the rules for listing of a Public Limited company in a stock exchange, specifies a minimum face value of INR 1. This is not applicable or connected to a Private Limited Company in any way.

What is face value of share in India?

Face value (also sometimes called Par value) is an accounting representation of the value of a company’s common stock on it’s balance sheet. Cipla has 8,029.60 Lakh shares in issue, so the face value is the Equity Share Capital / No.

Which share has highest face value?

MRF – the most expensive stock in terms of share price in India – is currently trading nearly 6,915 times its face value of Rs 10 per share at Rs 48,781 levels at the bourses.

What is the difference between face value and share price?

Market value per share is the current value at which the stock is trading in the market. Face value is the value of a company listed in its books of the company and share certificate.

What is the use of face value of share?

Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. … The face value for bonds is often referred to as “par value” or simply “par.”

Can face value be less than 1?

No. A stock split cannot happen if the current face value is already Rs 1.

Is face value always 1000?

Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. … Par value for a bond is typically $1,000 or $100 because these are the usual denominations in which they are issued.

How is face value of a share calculated?

Face value is not calculated. It is determined when the shares are issued by the company depending on the capital the company wishes to raise. Market value is calculated by dividing the company’s worth by the number of shares it has issued.

Can Face value increase?

If the number of shares in a company is multiplied by its market value, the result is market capitalisation. The face value of a company’s shares may be Rs 100. The company may want to change the face value. … So, basically, the number of shares have increased.

What is the face value of 7?

7 is in ones place, and its place value is 7. Place value and face value are not the same. The face value of a number is the value of the digit or numeral itself. For instance, the face value of 2 in 12783 is 2.

Do you not take anything at face value?

Applying this term to words, if you take someone’s words at face value, you’re not questioning their apparent worth. You’re assuming that the words are worth what they appear to be. … If you don’t take their words at face value, the opposite is true.

What does it mean to keep a straight face?

Don’t show one’s feelings, especially refrain from laughing. For example, The school orchestra played so many wrong notes that I had trouble keeping a straight face. [ Late 1800s]