Face Value Vs. Market Value
Posted by bsesensex on June 23, 2008
What is the face value of a share?
If a company A issues 100,000 shares and raises Rs. 1 Crore capital from it, then each share is used to raise Rs. 100. Rs. 100 is the face value of each share, in that case.
If after a period of time the share prices rises and becomes Rs. 500, this is called the market value of the share. It could be lower or higher than the face value, depending on how the market perceives the company and a host of other factors.
This entry was posted on June 23, 2008 at 10:00 am and is filed under Dummy's Guide to Stocks. Tagged: bombay stock exchange, bse, company, face value, fall price, fall share price, fall stock price, market, market rise, market value, national stock exchange, nse, price, rise price, rise share price, rise stock price, share, share market price, share price, stock market price, stock price, value. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
