POSTED BY November 15, 2010 1:33 pm ONE COMMENTON
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?
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One reply on this article “Face Value”
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.