Question

Can anyone please explain me in detail about face value and Market value

Answer 1

Face value
is the original value of the stock which is shown in the share certificate at the beginning when the company gets listed in the stock market.Face value of a share does not change and stays constant.For example, the face value of shares of Infosys is INR 5.

Market value
is the total value of the company.Market value is calculated by multiplying the total number of shares outstanding with the current market price of a share.For example, the total number of shares outstanding for ABC company is 50,000 shares and the current market price is INR 200.Thus, the total market value of the company is INR 10000000.