Face Value

Face value is the nominal or par value of a security, such as a stock or bond, which represents the amount paid by the issuer to the holder when the security is issued. In India, face value is an important concept in the valuation of securities and the calculation of dividends. Companies often issue securities at a face value lower than their market price, creating a discount or premium to the face value. Investors can use face value to understand the underlying value of a security and make informed investment decisions.