What Is Face Value Of A Share And Debenture?

Face Value Of A Share And Debenturestated value given to a security by the company. For stocks, it’s the original price of the share shown on the certificates for bonds, it’s the amount given to the share holder at maturation. Also called par value or just par.

For the equity stock, the face value is generally a very tiny amount Rs. 5 or Rs. 10 and doesn’t have very much bearing on the cost of the share, which may estimate larger in the share market, at Rs. 200 or Rs. 500 or other price.

For a debt security, face value is a amount of money refunded to the buyer while the bond aged, generally, Govt securities as well as corporate and business bonds have a face price of Rs. 100. The cost in which the security buys and sells depends on the variances in the interest rates in the economy.

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