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Face Value

What is Face Value?

It is the original, fixed price assigned to a share when the company first creates it. In India, this is usually just ₹10 or sometimes ₹5 or ₹1. It has absolutely nothing to do with the actual market price you see on the NSE or BSE, which could be ₹500 or ₹5000. You mostly hear about it when a company announces a stock split. If they split a ₹10-face-value share into ₹2, the market price also gets divided by 5, making it cheaper for small retail investors to buy.

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