Face Value

POSTED BY TheZionView ON November 15, 2010 1:33 pm ONE COMMENT

There is a Face Value associated with every stock.I see most with FV 10 and after a aplit it goes down to 5 or 2 or 1 etc.

While checking for a stock to be bought does this need to be considered and if yes ,in what sense does it make a difference?

One reply on this article “Face Value”

  1. Ramesh Mangal says:

    Face Value is important only if you are looking at the dividend payout, in terms of percentage. For example, if one share of a company has a market price of Rs. 100 and it gives a dividend of Rs. 3 then:
    – for a Face Value of Rs 10 per share, the percentage dividend will be 30%.
    – for FV of Rs 5 per share, it will be 60%
    – for FV of Rs. 1 per share, it will be 300%.

    But the dividend yield will be 3% in all 3 cases.

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