What is face value

What is face value

Meaning of Face Value
The face value of a share is also the par value of a share. In fact, it is the legal value of the share. Since it is the legal value of a stock, the company must not pay it in form of dividends to the shareholders. Furthermore, the company fixes the face value of the stock at the time of its issuance. Thus, the investors in the stock market must understand the face value of a stock.

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