Face Value is the value written on the face of the Share Certificate.
The face value of a share is known as Par Value
On What basis do dividends get declared?
On What do companies go ahead with stock Split?
After reading this post you will come to know about all these questions?
It is fixed and written over the share certificate.
Let’s look down at an example so that you would be cleared through what is the face value of a shared example.
Management of the company: We are declaring a 200% dividend of the stock.
What does it mean?
Now you can answer that 200% of Face Value, not the market value. Management considers face value as their base value.
A dividend is a reward paid to shareholders by a publicly-traded company, and it can be a source of passive income for you that you do not have to work for.
Management: We are announcing the Stock Split of a ratio of 1:5.
Yesterday we had 1 share of JUBILANT FOOD now, I have 5 shares of JUBILANT FOOD.
What just happened overnight.
Answer: 1 Stock has split into 5 stocks carrying which hold the same face value.
When trading or investing in stocks, terms like face value and market value become essential. It is critical to understand these terms to trade effectively and generate wealth from the stock market.
We hope We gave you some insights about face value and delivered them in the best possible way.
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