Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Face value is the nominal value of a share or bond stated in the company's charter or bond certificate, not its market price.
Face value is the original sticker price on a share or bond — usually ₹1, ₹2, ₹5, or ₹10 for Indian stocks — and is mostly symbolic for equity investors.
For bonds, face value (par) determines coupon payment base. For equity, dividends and splits reference face value. Market price diverges widely from face value based on earnings and demand.
An Indian stock with face value ₹10 may trade at ₹1,500. A bonus 1:1 doubles shares but halves face value to ₹5 — market price adjusts proportionally.
No direct impact on returns. Market price movements and dividends drive investor gains, not face value itself.
To improve liquidity and affordability by lowering per-share price while keeping total value unchanged for existing holders.
Most Indian listed shares have face value of ₹1, ₹2, ₹5, or ₹10, with ₹10 historically common though ₹1 is increasingly standard.