Face Value (Par Value) is the value of a company on its books and share certificates. It is decided by the company during share issuance.It can be of Rs 10 or 5 or 3 or 1. It is used for calculation of the accounting value of the company's stock on Balance Sheet.
In early days, when stock are issued through paper (share certificate) which included the face value. Nowadays, however, all certificates are issued in a digital format.The importance of face value in stock market is only for legal and accounting reasons (not realted to any price appreciation)
For example : If a company issue 10 share each of Rs:100 of Face Value Rs:10. The total Share Capital Rasied is No of Shares × Value Of Each Share × Face Value
i.e. 10×100×10 = 10,000
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