What is Face Value in Share Markets?
If you want to start trading in stocks and securities, you must be aware of the myriad terminologies used in stock markets. One such key concept is the face value of shares and bonds. Whenever a public listed company issues its stocks through Initial Public Offering (IPOs), it fixes the face value. It is simply the price at which you purchase the shares of a particular company. Similarly, a company can also choose to raise capital or funds through issuance of bonds. These are also issued at a face value.
Also known as par value, face value is the value of the company as listed in its books and share certificates. It is fixed by the company, once it decides to issue its shares and bonds. To start trading in stock markets, you are compulsorily required to open a Demat Account and a share trading account. Here you must remember to select a reliable stockbroker, who can provide features like a free trading account .