Face value

    Par Value / Face Value

    Fundamentals

    The nominal value of a share as stated in the company's charter. Used for accounting purposes and calculating dividends.

    Formula

    Share Capital = Face Value × Number of Shares

    Why it matters

    Face value is used to calculate dividends (often expressed as % of face value) and for stock splits. Has no relation to market price.

    Indian example

    Related terms

    Stock splitBonus sharesPremium

    Learn the concept

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    From the research

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