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We will now have a list of TERMINOLOGY used in the Equity Market in a series of blog posts.
The nominal value of a share is known as its Face Value. The equity capital of the company is calculated by multiplying the number of shares issued by its face value. For example, in case a company has issued 10 lakhs shares with Face value of Rs. 10, then the equity capital of the company would be Rs. 100 Lakhs (Rs. 10 * Rs. 10 Lakhs). The face value of the company’s shares usually does not change unless the company decides to split or consolidate its shares.
The face value of the company’s shares usually does not change unless the company decides to split or consolidate its shares.
The Face Value of a share is important for calculating the dividend payable on a share.
In the next post, we will see what does BOOK VALUE mean.
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I was recently talking to an individual investor and during the course of our discussion, I had come up with 3 things one shouldn’t believe while investing in equity.
Researching is good. It has to be done when we invest in a stock. But then over-researching spoils everything. Do the minimal amount of research and then Invest a small potion of your portfolio and increase it over ṭime.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.
– Warren Buffett
BELIVE IN COMPANY RATHER THAN MARKET
Study a company. Understand its values, principals before you do the next level of research. Before you invest, think twice. Think twice that you are investing in a stock and not the market. However the value of a stock is essentially determined by the market. But then Company results also matters a lot.
Last night I was reading a book on Stock investments. 3 important points I wish to share with all of you.
Every human problems is an investment opportunity if you can anticipate the solution.
Investors need to distinguish between activity and results.
What investors should do is to focus on the business and not on market prices.
These learnings are not only important while investing in a stock market but also in your personal life.
Happy Reading !