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Face Value

Definition - What does Face Value mean?

Face value in simple terms can be defined as the value stated on the instrument. With respect to shares of stock, it is the original value shown on the stock, also known as “par value.” It is different from the market value as it is the value set by authority issuing stocks.

Justipedia explains Face Value

Market value may differ from the original face value due to fluctuation in rate of interest and other economic elements. The market value of “American Gold Eagle Bullion” coin was $1,200 in 2009 when its face value was only $50.

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