Wednesday, July 14, 2010

What is mean by face value & book value related to share market?

face value:





The value printed on the face of a stock, bond, or other financial instrument or document





book value per share:





The accounting value of a share of common stock, determined by dividing the company's net worth by the number of shares that are circulating

What is mean by face value %26amp; book value related to share market?
book value per share:


The accounting value of a share of common stock, determined by dividing the company's net worth by the number of shares that are circulating





face value:


The value printed on the face of a stock, bond, or other financial instrument or document
Reply:It is simple yaar,





Face value means value appear on face of the instruments in your case it is share only normally it is in multiple of RS. 10





Now a days many companies go for small face value such as Rs.1





Book value means value calculated by book only.Its tottaly depends on method of accounting that campany follow.





Thanking You





Rakesh
Reply:it doesn't matter because neither are relevant to where the stock will go, unless you think the company may be bought out then book value may come into play.


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