Face value meaning

Face value is the stated value of a share on its certificate, representing its nominal price.

Uses of face value

The face value of a share is considered for stock splits and dividends. A split reduces face value proportionally, while Dividends are paid on face value, not market price.

Face value vs market value

Face value represents the initial company worth, while market value reflects the current trading price. Market value is dynamic, while face value remains constant.

Face value vs book value

Face value is the nominal share worth at issuance, while the Book value is assets after liabilities are paid, indicating potential shareholder payout if a company closes.