The term face value refers to the value which appears on securities or stocks (or bills or coins, for that matter), which can differ from their market value.
Face value in practice: In the case of shares, the face value is the value which the shares have at the moment of their issue – the face value is printed on the shares – from it, the basic capital of a company arises. The actual value of the shares can be higher or lower, depending on the demand and supply on the market.
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