The face value of a stock or bond does not denote the actual market value, which is determined based on principles of supply and demand—often governed by the dollar figure at which investors are willing to buy and sell a particular security, at a specific point in time. In fact, depending on market conditions, the face value and market value may have very little correlation. (View Highlight)
While face value is the original price of a stock as set by its issuer, market value is influenced by external supply-and-demand forces. Market value is the price that the market will bear, and it can differ significantly from a stock’s initial price. For example, the face value of Apple shares is 0.00001,whilethemarketvalueofitssharescanfluctuateabove100. (View Highlight)
