Glossary Background

Face Value

Face value refers to the nominal value of a stock or bond, calculated by dividing a company's Equity Share Capital by its total shares outstanding. In India, the face value of shares typically ranges from Rs. 1 to Rs. 100. However, the market value of a share can vary significantly. For instance, Tatasteel shares have a face value of Rs. 1, but their market value is Rs. 150. Face value is also called nominal value or par value, especially in bonds. For bonds, face value is the amount an investor receives upon maturity, and it may differ from the market value.