The term face value might sound technical, but it’s one of the most basic concepts in the stock market that every investor should understand. Whether you’re looking at shares, bonds, or mutual funds, face value plays a key role in determining how securities are priced and valued.
What Exactly Is Face Value?
Face value (also known as nominal value or par value) is the original value assigned to a share or bond by the issuing company. It represents the base value of the security at the time of issue and is usually printed on the share certificate.
For example, if a company issues 1,00,000 shares with a face value of ₹10 each, its total share capital becomes ₹10,00,000. This value remains constant in the company’s books unless the firm decides to split or consolidate its shares.
Face Value vs Market Value
Many beginners confuse face value with market value — but they are quite different.
| Parameter | Face Value | Market Value |
|---|---|---|
| Meaning | The nominal value assigned by the company at issue | The price at which the share trades in the stock market |
| Determined By | The company | Demand and supply in the market |
| Changes Frequently | No | Yes, it fluctuates daily |
| Example | ₹10 | ₹150 (if traded in market) |
So, while the face value remains fixed, the market value keeps changing based on investor sentiment, company performance, and economic trends.
Why Face Value Matters
Even though it doesn’t change often, face value plays a role in several financial aspects:
- Dividend Declaration: Companies declare dividends based on the face value. For example, a 50% dividend on a ₹10 face value share means a payout of ₹5 per share.
- Stock Splits: When a company splits its shares, the face value gets divided. For instance, if the face value changes from ₹10 to ₹5, each existing share becomes two shares.
- Bond Pricing: In bonds, face value indicates the amount that will be repaid to investors upon maturity.
How Our Website Helps Investors
On our website, we display not just the Bhav Copy data but also highlight key information like face value, market price, and daily changes — all in a clean, filterable format. This makes it easier for both traders and investors to understand the real worth of a stock beyond just its market fluctuations.
By simplifying complex financial data, we help you make smarter investment decisions — whether you’re tracking short-term price action or analyzing the fundamentals of a company.