Face Value Meaning

Face value is the original value of a stock or bond set by the issuer. It remains fixed, unlike market value, which varies based on market conditions and investor perception.

What Is Book Value?

Book value is a company's net value, calculated by subtracting liabilities from assets. It shows equity value for shareholders but may not reflect the true value of a company.

Market Value Meaning

Market value is the current trading price of an asset, influenced by supply, demand, and investor sentiment, often differing from book value and changing dynamically.

Difference Between Face Value, Book Value, And Market Value

Definition

Face value is the original value set by the issuer; book value is net assets minus liabilities; whereas market value is the current trading price in the market.

Difference Between Face Value, Book Value, And Market Value

Determination

Face value is set by the issuer and stays constant; book value changes with assets and liabilities; while market value is driven by market forces and fluctuates.

Difference Between Face Value, Book Value, And Market Value

Reflects

Face value shows the nominal value of a security; book value indicates a company's financial health; whereas market value reflects public perception and demand.

Difference Between Face Value, Book Value, And Market Value

Variability

Face value remains unchanged; book value can vary with financial status; on the other hand, market value is highly dynamic and shifts with market conditions.