Face value is the stated value of a share on its certificate, representing its nominal price.
For example, if a company issues 10M shares at a ₹10 face value, its authorized capital is ₹100M (10M × ₹10). The face value of ₹10 per share is fixed, unlike the market price.
To calculate the face value of a share, you need to know the company’s authorized share capital and total authorized shares. Then, divide capital by shares.
Face value is the original cost listed on the stock certificate, while book value is the net asset value of the company, calculated from its financial statements.
Face value is the original cost of a security listed on the certificate, while market value is its current trading price on the stock market.
Face value is crucial for calculating dividends, bond interest, and pricing. It also impacts corporate actions like stock splits, affecting share count and equity.