- What is an IPO?
- What is Face Value in IPO?
- What does stock split means?
- What is the minimum and maximum value of a share?
- What does market value and book value means?
IPO stands for Initial Public Offering is a process in which a private company goes public by issuing shares to the general public for the first time.
The face value, also known as par value, is the fixed value of the share decided by the company and later on it comes out with an initial public offering (IPO). The face value can be any value like INR 2, INR 10, or INR 1000.
A stock split means a company decides to divide its existing shares into multiple areas to improve the volatility of a stock.
The minimum face value of a company’s share is RS 1 while the maximum value can be any price that is decided by the management. However there is no maximum value of share that is fixed by the SEBI.
The market value means the share of a company is traded at the current price in the stock market. On the other hand, book value refers to the net worth of the company, which is mentioned in its book.
Final Thoughts
Before starting a trading journey, every investor should be well-versed with the company's face value and market value.
However, there are several other technical terms, but an investor should clearly understand these terms.
Based on the face value, several actions have been taken by the listed companies, and hence an investor should have some information about these actions.
Thus, a general understanding of face value, issue price, book value, and market value will help investors to perform better in trading.
