Face value of a stock

Face value also known as par value is the fixed unit of a share. Companies have face value of a stock in its books and share certificate. Mostly the FV of a company is always lower than its market price however in case of penny stocks it can get lower. Penny stocks are those which trading at a price lower than Rs.10. When a company decides to give dividends or split their shares Face value comes in perspective. FV doesn’t get impacted by market price whether it goes up or down. It is not of much importance for traders or investors as it is companies internal policy to decide the number.

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