Скачать или смотреть What is Face Value? 📄💰 | Stock & Bond Basics Explained | Day 44/50

Day 44/50 – 50 Days | 50 Financial Terms 📘✨

Welcome to Day 44!
In today’s video, I explain what Face Value means in stocks, bonds, and IPOs.
Face Value is one of the most misunderstood financial terms among beginners.

Face Value = The original value of a share or bond decided by the company — usually ₹1, ₹2, ₹5 or ₹10 💰📄
It has nothing to do with market price.

⭐ Where Do You See Face Value?

✔ Company shares
✔ Bonds & debentures
✔ IPO documents
✔ Corporate actions like bonus & splits

💡 Example (SEO Boost)

If a company’s Face Value = ₹10,
but its Market Price = ₹1,200,
it means the company’s shares are trading much higher than their nominal value.
Face value stays the same unless the company decides to split the shares.

Example:
If a stock splits 1:10,
Face value changes from ₹10 → ₹1,
and number of shares increases.

⭐ Why Face Value Matters?

• Used for dividend calculation
• Important during stock split & bonus issue
• Used to determine bond interest (coupon)
• Helps in reading company balance sheets
• Useful during corporate actions

📌 Important Note

Face value ≠ Market value
Market price depends on demand, supply, profits, and future potential.
Face value is only an accounting value.

Stay tuned for Day 45 tomorrow! 🔔📈

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