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Glossary · PSX term

Face value.

Face value, or par value, is the nominal value of a share set in the company's accounts.

Definition

Most PSX shares have a face value of Rs. 10, which is the basis for declaring dividends as a percentage and for some legal calculations. Face value is usually very different from the market price.

Worked example

A 50% cash dividend on a Rs. 10 face value share equals Rs. 5 per share, regardless of the market price.

Related on PSX Clarity

Term
Book value
Term
Gross dividend
Term
Share split

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