Connection between face value of share and sale of share ?

If I have a share of face value Rs.1 and the market price of the share is say Rs.300, then if I try to sell the same do I get the sale price as Rs.300 or is it reduced and why?

5 Replies to “Connection between face value of share and sale of share ?”

  1. If you have people ready to buy at Rs. 300 then it will be sold at that price only and you will get the money minus the brokerage and Taxes. That will be 0.7% of the sale value. i.e., 300 – (300 x 0.7%) = 297.9

  2. Face value is the value at which the shares first issued. Sales value depends upon the market flucations for that particular co./share. If you are particular about getting full market/sale value, you will have to change hands within your own friend circle who may not involve any brokers.

  3. You sell or buy shares in the stockmarket. It is the market price that you get. The face value is not relevent to you.

  4. if 1000 people collectively invested 10 rupees each and started business. and over the years the business has grown up. now this is a value of 1lakh.

    i.e., each persons 10 rupees now become 100 rupees value. now some one who invested earlier likes to sell his 10 rupees share. so somebody will buy it at 100 rupees.

    that 10 rupees is face value.

    this 100 rupees is market value.

    market value depends on somany things. so it changes accordingly

    there is no relation between face value and market value.

    but if face value is reduced, i.e., in this case if they reduce 10 rupees face value to 5 rupees face value, automatically market value also reduced accordingly, inthis case it will become 50 rupees

  5. All companies issue shares with a fixed denomination called the face value (or par value) of the share. This face value be indicated on the share certificate. Generally Indian shares has a face value of Rs. 10/-

    Based on the performance of the Company, the demand to purchase the company’s shares will go high. So the price of the shares will also go high. That price is called as market price.

    There is no relation between these two.Market value of the share will always change depending upon the market conditions.

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