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.
Posted in 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 | Leave a Comment »
Posted by bsesensex on June 20, 2008
Question: What is EPS ?
Answer: Let us assume that there is a company A, which has issued 100,000 shares, each having a market value of Rs. 500 and a face value of Rs. 100.
Now let us assume that the profit of the company in a financial year, after taxe deductions is Rs. 1 Crore.
The EPS or earning per share will then be calculated as the shared earning of each share.
So, the EPS will be Rs. 1 Crore divided by 100,000 shares or Rs. 100
The EPS will be Rs. 100 in this case.
Posted in Dummy's Guide to Stocks | Tagged: bombay stock exchange, bse, calculated, company, earning per share, eps, financial year, national stock exchange, nse, profit, rs., rupess, share, stock | 3 Comments »
Posted by bsesensex on June 19, 2008
Question: What is a share and how is its value calculated?
Answer: Let us assume that there is a company A. Let us say that the worth of the total company is Rs. 5 Crore.
Now let us assume that the company issues 100,000 (one lakh) shares.
So, each share will divide the ownership of the company by a factor of 100,000 and therefore each share will be worth Rs. 5 Crore divided by 100,000 which is equal to Rs. 500. Each share will then become worth Rs. 500.
So, in other words, when you own one share of a company, you own a small (very small) part of that company. If the company has one crore shares then you own 1 by Crore part of that company.
Posted in Dummy's Guide to Stocks | Tagged: bombay stock exchange, bse, company, national stock exchange, nse, share, share issues, share price, shares issues, stock, stock exchange, stock price | 1 Comment »
