What is the differance between book value of share and face value of share?

Face Value :Basic Value with out adding premium, it is mentioned on the face of share certificate.


Book value : Issued share capital plus reserves (accumulated profit)minus current liabilities


If book value is more than face value then you can judge that corporation is generating profit. It has no relation with market value.


If the book value is less than face value of share then you can say that capital is eroded and company has not started generating profits. Liabilities are higher than assets.

What is the differance between book value of share and face value of share?
Face value of a share is the price printed on the face of the share certicate. Face value of one share multiplied by thetotal number of shares gives the shreholder equity of the company. Book value is the total shareholder equity less preferance shares divided by the total no. of shares.
Reply:Book value is the market value of the share at which it is traded in stock market.


Face value is the original value at which it is issued in the market initially.
Reply:Book Value of the share is based on teh Net Asset Value of the company, where as face value is the price fixed as share price, for example ABc company face value of share say 1


while the NAV of the company can be below 1 or 1 +.*