7.15.2008

What is meant by Face Value of a share/debenture?

For shares, it is the original cost of the stock shown on the certificate or you own only the face value of the company shares.
for bonds, it is the amount paid to the holder at maturity. Also known as par value or simply par.
For an equity share, the face value is usually a very small amount (Rs. 5, Rs. 10) and which may quoted higher in the market, at Rs. 100 or Rs. 1000 or any

other price.
For a debt security, face value is the amount repaid to the investor when the bond matures (usually, Government securities and
corporate bonds have a face value of Rs. 100). The price at which the security trades depends on the fluctuations in the interest rates in the economy.