What is FV
FV( face value) suppose you and your friend X starts a comapny, company capital is 1,000,000 you give 500,000 and x give also 500,000 you and X decide the fv is @2. its mean total shares are 100000 divided by 2= 500,000, so X give for company= 500000 divided by 2= 250000 and you also have 250000 shares. and your company is pvt.(private) company. after some years you and X wants some extra money for company you and X decide to change this company from pvt to public company for by selling shares(you and X decide the shares and shares' price) after the process of IPO. but the price of share is not @2 because your company do progress in that years.
So the difference between between shares and FV is - FV decide by the promoters (promoters are those who starts company and decide the FV) and FV price is in share certificate, market value per share is the current value at which the stock is trading in the market.
if you don't know what is stock market, GDP, market cap etc. click this link for what is stock market, GDP, market cap etc. below-
https://bigbuisnesshelper.blogspot.com/2020/12/what-is-stock-market-full-information.html

0 Comments