# What is face value in stock market?

## What is face value in stock market?

What is face value in an IPO ? 4 min read. The face value, also known as the par value or the nominal value, is the fixed value of the share decided by the company when it comes out with an initial public offering(IPO). The IPO is the process by which a company raises capital for growth and expansion.

## What is par or face value of shares?

Par value is the face value of a bond. Par value for a share refers to the stock value stated in the corporate charter. Shares usually have no par value or very low par value, such as one cent per share. In the case of equity, the par value has very little relation to the shares’ market price.

## What is difference between face value and issue price?

The face value, also known as the par value, is the nominal value of the shares. The issue price or the price band are the face value of the shares with an added premium that the company decides to ask from potential subscribers.

## What is face value and dividend?

The part of the annual profit of a company distributed among its shareholders is called dividend. The dividend is always declared by the company on the face value (FV) of a share irrespective of its market value. The rate of dividend is expressed as a percentage of the face value of a share per annum.

## Who is eligible for dividend?

The ex-dividend date for stocks is usually set one business day before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.

## Can face value be less than 1?

No, it can’t be splitted by face value. But if there is any demerger within the company, then two different shares will be allocated to the shareholders. Never ever look into the Face Value of the Shares.

## What is face value example?

Face value is the actual value of a digit in a number. To get the place value of a number, we multiply the digit value with its numerical value. For example, in the number 452, the place value of 5 is (5 × 10) = 50, since 5 is in tens place. The face value of a digit is the number itself.

## Can a stock be split if the face value reaches Rs 1?

Stock split refers to split the face value of the shares of companies. Accordingly, in 1:10 split, shares of Rs. 10 face value may be reduced to face value of Re. 1….What is stock split?

ABC company Before stock split After 1:10 stock split
Net worth (Equity + Reserves) Rs. 13,000 Rs. 13,000