Par value, in finance and accounting, means stated value or face value. From this come the expressions at par (at the par value), over par (over par value) and under par (under par value).
Bonds
A bond selling at par is priced at 100% of face value. Par is also used to refer to its original issue value or its value upon redemption at maturity. This amount is typically $1000 per bond.
Stock
Par value stock has no relation to market value and, as a concept, is somewhat archaic. The par value of a share of stock is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive a more favorable issue price. Thus, par value is the nominal value of a security which is determined by the issuing company to be its minimum price. This was far more important in unregulated equity markets than in the regulated markets that exist today, where a stock issuance prices must usually be published. The par value of stock remains unchanged in a bonus stock issue but it changes in a stock split.
Parè is a comune (municipality) in the Province of Como in the Italian region Lombardy, located about 40 kilometres (25mi) northwest of Milan and about 6 kilometres (4mi) west of Como, on the border with Switzerland. As of 31 December 2007, it had a population of 1,784 and an area of 2.2 square kilometres (0.85sqmi).
In the Napoleonic era the municipality of Parè was suppressed and united to Gironico (also municipalities of Drezzo and Montano were aggregated to it). The union lasted until 1816 when the previous municipalities were restored.
In 1928 the municipalities of Parè, Drezzo and Cavallasca were united into a single municipality called Lieto Colle (name inspired by Margherita Sarfatti, the lover of Benito Mussolini who had a palace in Cavallasca). The town hall was in Parè. After the end of Fascism, the discontent against the union grew, but only in 1956 the municipality of Lieto Colle was suppressed and the three municipalities of Parè, Drezzo and Cavallasca restored.
Financial Accounting - Lesson 11.3 - Par Value vs No Par Value
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Information provided in this video is for educational purposes only and should not be taken as professional advice. Seek a professional on how this information pertains to your particular situation.
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published: 13 Nov 2019
Bonds - Par Value and more
Bonds - Par Value and more
published: 29 Apr 2013
What is Par value | Face Value | Nominal Value By Knowledge Topper
Complete and clear explanation about features of fixed income securities or features of a bond and in this video we discuss par value or face value or nominal value or principal amount of a bond or fixed income security by knowledge topper with suitable examples............
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This topic covers the following :
basic features of fixed income securities
par value example
bonds par value
face value of a bond
par value vs face value
face value meaning
face value of share
face value example
face value of life insurance
nominal value of shares
nominal value meaning
nominal value of a ...
published: 04 Mar 2020
Par Value Explained
Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/par-value-overview/
published: 14 Jun 2018
Concept of Par Value
Table of Contents:
00:00 - Introduction
00:00 - STOCKHOLDERS’ EQUITY
00:05 - Common Stock
00:07 - Common Stock
01:12 - Common Stock
01:14 - Common Stock
01:34 - Common Stock
01:35 - Common Stock
01:41 - Concept of Par Value
01:43 - Concept of Par Value
02:52 - Concept of Par Value
02:53 - Concept of Par Value
03:49 - Concept of Par Value
03:50 - Concept of Par Value
04:09 - Owners’ Contributions
04:11 - Owners’ Contributions
05:19 - Additional Paid-In Capital
05:20 - Additional Paid-In Capital
06:19 - Terminology
06:20 - Terminology
08:00 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:01 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:50 - Aim High...
published: 28 May 2019
Capital Stock (Common Stock and Preferred Stock)
This video explains the capital stock section of stockholders' equity by discussing the par value and the number of shares authorized, issued, and outstanding.
—
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—
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published: 29 Aug 2014
No-par vs Par Stock
Some companies issue stock that has a par value while other companies issue no-par stock. In both cases, total assets and total stockholders' equity increase as a result of the stock issuance. However, there is a difference in the accounts that are credited based on whether the stock has a par value.
For example, let's say a company issues 5,000 common shares with a par value of $2/share and a market value of $40/share. The company would debit the cash account for $200,000 ($40/share * 5,000 shares). In addition, the company would credit the common stock account for $10,000 ($2/share * 5,000 shares) and credit the additional paid-in capital account for $190,000 ($38/share * 5,000 shares).
If the company had instead issued the 5,000 common shares as no-par stock with a market value of...
published: 22 Nov 2021
PAR value, Market Value, Book Value in Financial Management (Urdu / Hindi)- Lecture 7 [Book Example]
This Lecture 7 of financial management is about PAR value, Market Value, Book Value. This financial management lecture explains these topics in Urdu & Hindi language with help of EXAMPLE.
A) Topics explained in this financial management lecture:
-PAR value
-book value
-market value
-par value vs book value vs market value
-Calculation of Book Value using balance sheet
B) Description / Notes of financial management lectures in urdu:
-PAR value is the price which on which your shares are issued by the concerned authority.
-Market value is the current price of your share in the trading market or it is the price which investors are ready to pay for your shares.
-Book value is the price which is calculated from the balance sheet.
- book value per share can be done by using the Net SHE...
Get a link to EVERY Financial Accounting video by heading to my website at https://www.patrickleemsa.com/principles-of-accounting-i.
Purchase the accompanying...
Get a link to EVERY Financial Accounting video by heading to my website at https://www.patrickleemsa.com/principles-of-accounting-i.
Purchase the accompanying worksheet to this lesson. Head over to https://www.patrickleemsa.com/youtube-worksheets/fa-section11wkst to purchase the entire section’s worksheet.
For an entire listing of all of our YouTube videos head over to our website at www.patrickleemsa.com.
Information provided in this video is for educational purposes only and should not be taken as professional advice. Seek a professional on how this information pertains to your particular situation.
Visit our sister website at www.financialgrit.com.
What did you learn from this video? Put it in the comment section below.
Contact Information:
License Videos - [email protected]
Digital Worksheet Download Inquires - [email protected]
Business Opportunities - [email protected]
Questions - [email protected]
Get a link to EVERY Financial Accounting video by heading to my website at https://www.patrickleemsa.com/principles-of-accounting-i.
Purchase the accompanying worksheet to this lesson. Head over to https://www.patrickleemsa.com/youtube-worksheets/fa-section11wkst to purchase the entire section’s worksheet.
For an entire listing of all of our YouTube videos head over to our website at www.patrickleemsa.com.
Information provided in this video is for educational purposes only and should not be taken as professional advice. Seek a professional on how this information pertains to your particular situation.
Visit our sister website at www.financialgrit.com.
What did you learn from this video? Put it in the comment section below.
Contact Information:
License Videos - [email protected]
Digital Worksheet Download Inquires - [email protected]
Business Opportunities - [email protected]
Questions - [email protected]
Complete and clear explanation about features of fixed income securities or features of a bond and in this video we discuss par value or face value or nominal v...
Complete and clear explanation about features of fixed income securities or features of a bond and in this video we discuss par value or face value or nominal value or principal amount of a bond or fixed income security by knowledge topper with suitable examples............
Subscribe Knowledge Topper
https://www.youtube.com/KnowledgeTopper/
Like us on Facebook
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Join Our Group Knowledge Topper
https://www.facebook.com/groups/226675888342227/
This topic covers the following :
basic features of fixed income securities
par value example
bonds par value
face value of a bond
par value vs face value
face value meaning
face value of share
face value example
face value of life insurance
nominal value of shares
nominal value meaning
nominal value of a bond
what is face value of shares
par stock
Complete and clear explanation about features of fixed income securities or features of a bond and in this video we discuss par value or face value or nominal value or principal amount of a bond or fixed income security by knowledge topper with suitable examples............
Subscribe Knowledge Topper
https://www.youtube.com/KnowledgeTopper/
Like us on Facebook
https://www.facebook.com/KnowledgeTopper/
Join Our Group Knowledge Topper
https://www.facebook.com/groups/226675888342227/
This topic covers the following :
basic features of fixed income securities
par value example
bonds par value
face value of a bond
par value vs face value
face value meaning
face value of share
face value example
face value of life insurance
nominal value of shares
nominal value meaning
nominal value of a bond
what is face value of shares
par stock
Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
Click here to learn more about this to...
Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/par-value-overview/
Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/par-value-overview/
Table of Contents:
00:00 - Introduction
00:00 - STOCKHOLDERS’ EQUITY
00:05 - Common Stock
00:07 - Common Stock
01:12 - Common Stock
01:14 - Common Stoc...
Table of Contents:
00:00 - Introduction
00:00 - STOCKHOLDERS’ EQUITY
00:05 - Common Stock
00:07 - Common Stock
01:12 - Common Stock
01:14 - Common Stock
01:34 - Common Stock
01:35 - Common Stock
01:41 - Concept of Par Value
01:43 - Concept of Par Value
02:52 - Concept of Par Value
02:53 - Concept of Par Value
03:49 - Concept of Par Value
03:50 - Concept of Par Value
04:09 - Owners’ Contributions
04:11 - Owners’ Contributions
05:19 - Additional Paid-In Capital
05:20 - Additional Paid-In Capital
06:19 - Terminology
06:20 - Terminology
08:00 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:01 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:50 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
08:52 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
09:17 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:19 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:49 - Concept of Par Value
09:50 - Concept of Par Value
10:05 - Created by Katheryn Reynolds
10:06 - Created by Katheryn Reynolds
Table of Contents:
00:00 - Introduction
00:00 - STOCKHOLDERS’ EQUITY
00:05 - Common Stock
00:07 - Common Stock
01:12 - Common Stock
01:14 - Common Stock
01:34 - Common Stock
01:35 - Common Stock
01:41 - Concept of Par Value
01:43 - Concept of Par Value
02:52 - Concept of Par Value
02:53 - Concept of Par Value
03:49 - Concept of Par Value
03:50 - Concept of Par Value
04:09 - Owners’ Contributions
04:11 - Owners’ Contributions
05:19 - Additional Paid-In Capital
05:20 - Additional Paid-In Capital
06:19 - Terminology
06:20 - Terminology
08:00 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:01 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:50 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
08:52 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
09:17 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:19 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:49 - Concept of Par Value
09:50 - Concept of Par Value
10:05 - Created by Katheryn Reynolds
10:06 - Created by Katheryn Reynolds
This video explains the capital stock section of stockholders' equity by discussing the par value and the number of shares authorized, issued, and outstanding.
...
This video explains the capital stock section of stockholders' equity by discussing the par value and the number of shares authorized, issued, and outstanding.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
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This video explains the capital stock section of stockholders' equity by discussing the par value and the number of shares authorized, issued, and outstanding.
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
*https://www.patreon.com/prof_mclaughlin
—
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com
—
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* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
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Some companies issue stock that has a par value while other companies issue no-par stock. In both cases, total assets and total stockholders' equity increase a...
Some companies issue stock that has a par value while other companies issue no-par stock. In both cases, total assets and total stockholders' equity increase as a result of the stock issuance. However, there is a difference in the accounts that are credited based on whether the stock has a par value.
For example, let's say a company issues 5,000 common shares with a par value of $2/share and a market value of $40/share. The company would debit the cash account for $200,000 ($40/share * 5,000 shares). In addition, the company would credit the common stock account for $10,000 ($2/share * 5,000 shares) and credit the additional paid-in capital account for $190,000 ($38/share * 5,000 shares).
If the company had instead issued the 5,000 common shares as no-par stock with a market value of $40/share, the company would debit the cash account for $200,000 and credit the common stock account for $200,000 (the additional paid-in capital account is not affected by no-par stock).
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
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*https://www.patreon.com/prof_mclaughlin
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* https://michaelmclaughlin.com
Some companies issue stock that has a par value while other companies issue no-par stock. In both cases, total assets and total stockholders' equity increase as a result of the stock issuance. However, there is a difference in the accounts that are credited based on whether the stock has a par value.
For example, let's say a company issues 5,000 common shares with a par value of $2/share and a market value of $40/share. The company would debit the cash account for $200,000 ($40/share * 5,000 shares). In addition, the company would credit the common stock account for $10,000 ($2/share * 5,000 shares) and credit the additional paid-in capital account for $190,000 ($38/share * 5,000 shares).
If the company had instead issued the 5,000 common shares as no-par stock with a market value of $40/share, the company would debit the cash account for $200,000 and credit the common stock account for $200,000 (the additional paid-in capital account is not affected by no-par stock).
—
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
—
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
* http://eepurl.com/dIaa5z
—
SUPPORT EDSPIRA ON PATREON
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GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
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* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
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This Lecture 7 of financial management is about PAR value, Market Value, Book Value. This financial management lecture explains these topics in Urdu & Hindi lan...
This Lecture 7 of financial management is about PAR value, Market Value, Book Value. This financial management lecture explains these topics in Urdu & Hindi language with help of EXAMPLE.
A) Topics explained in this financial management lecture:
-PAR value
-book value
-market value
-par value vs book value vs market value
-Calculation of Book Value using balance sheet
B) Description / Notes of financial management lectures in urdu:
-PAR value is the price which on which your shares are issued by the concerned authority.
-Market value is the current price of your share in the trading market or it is the price which investors are ready to pay for your shares.
-Book value is the price which is calculated from the balance sheet.
- book value per share can be done by using the Net SHE, preferred dividends & number of common shares from the balance sheet, the formula of book value is given in this video.
C) Language Used in financial management lecture 7:
-Hindi
-Urdu
we made this financial management in hindi / financial management in urdu and describes par value in hindi, market value in hindi so that students in pakistan & indian universities can take full advantage of this video.
D) Watch full lecture in order to understand the following concepts:
-how to calculate book value per share from balance sheet
-calculate book value from balance sheet
-market value vs book value
-market value of equity
-book value per share
-book value vs market value
-book value in accounting
-par value stock explained
-par value stock
-financial
-management
This Lecture 7 of financial management is about PAR value, Market Value, Book Value. This financial management lecture explains these topics in Urdu & Hindi language with help of EXAMPLE.
A) Topics explained in this financial management lecture:
-PAR value
-book value
-market value
-par value vs book value vs market value
-Calculation of Book Value using balance sheet
B) Description / Notes of financial management lectures in urdu:
-PAR value is the price which on which your shares are issued by the concerned authority.
-Market value is the current price of your share in the trading market or it is the price which investors are ready to pay for your shares.
-Book value is the price which is calculated from the balance sheet.
- book value per share can be done by using the Net SHE, preferred dividends & number of common shares from the balance sheet, the formula of book value is given in this video.
C) Language Used in financial management lecture 7:
-Hindi
-Urdu
we made this financial management in hindi / financial management in urdu and describes par value in hindi, market value in hindi so that students in pakistan & indian universities can take full advantage of this video.
D) Watch full lecture in order to understand the following concepts:
-how to calculate book value per share from balance sheet
-calculate book value from balance sheet
-market value vs book value
-market value of equity
-book value per share
-book value vs market value
-book value in accounting
-par value stock explained
-par value stock
-financial
-management
Get a link to EVERY Financial Accounting video by heading to my website at https://www.patrickleemsa.com/principles-of-accounting-i.
Purchase the accompanying worksheet to this lesson. Head over to https://www.patrickleemsa.com/youtube-worksheets/fa-section11wkst to purchase the entire section’s worksheet.
For an entire listing of all of our YouTube videos head over to our website at www.patrickleemsa.com.
Information provided in this video is for educational purposes only and should not be taken as professional advice. Seek a professional on how this information pertains to your particular situation.
Visit our sister website at www.financialgrit.com.
What did you learn from this video? Put it in the comment section below.
Contact Information:
License Videos - [email protected]
Digital Worksheet Download Inquires - [email protected]
Business Opportunities - [email protected]
Questions - [email protected]
Complete and clear explanation about features of fixed income securities or features of a bond and in this video we discuss par value or face value or nominal value or principal amount of a bond or fixed income security by knowledge topper with suitable examples............
Subscribe Knowledge Topper
https://www.youtube.com/KnowledgeTopper/
Like us on Facebook
https://www.facebook.com/KnowledgeTopper/
Join Our Group Knowledge Topper
https://www.facebook.com/groups/226675888342227/
This topic covers the following :
basic features of fixed income securities
par value example
bonds par value
face value of a bond
par value vs face value
face value meaning
face value of share
face value example
face value of life insurance
nominal value of shares
nominal value meaning
nominal value of a bond
what is face value of shares
par stock
Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
Click here to learn more about this topic: https://corporatefinanceinstitute.com/resources/knowledge/accounting/par-value-overview/
Table of Contents:
00:00 - Introduction
00:00 - STOCKHOLDERS’ EQUITY
00:05 - Common Stock
00:07 - Common Stock
01:12 - Common Stock
01:14 - Common Stock
01:34 - Common Stock
01:35 - Common Stock
01:41 - Concept of Par Value
01:43 - Concept of Par Value
02:52 - Concept of Par Value
02:53 - Concept of Par Value
03:49 - Concept of Par Value
03:50 - Concept of Par Value
04:09 - Owners’ Contributions
04:11 - Owners’ Contributions
05:19 - Additional Paid-In Capital
05:20 - Additional Paid-In Capital
06:19 - Terminology
06:20 - Terminology
08:00 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:01 - Aim Higher Corporation sold 10,000 of its common shares, $1 par value per share, for $15 per share.
08:50 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
08:52 - Aim Higher Corporation sold 10,000 of its common shares, $5 stated value per share, for $15 per share.
09:17 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:19 - Aim Higher Corporation sold 10,000 of its common shares, no par-value stock, for $15 per share.
09:49 - Concept of Par Value
09:50 - Concept of Par Value
10:05 - Created by Katheryn Reynolds
10:06 - Created by Katheryn Reynolds
This video explains the capital stock section of stockholders' equity by discussing the par value and the number of shares authorized, issued, and outstanding.
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Some companies issue stock that has a par value while other companies issue no-par stock. In both cases, total assets and total stockholders' equity increase as a result of the stock issuance. However, there is a difference in the accounts that are credited based on whether the stock has a par value.
For example, let's say a company issues 5,000 common shares with a par value of $2/share and a market value of $40/share. The company would debit the cash account for $200,000 ($40/share * 5,000 shares). In addition, the company would credit the common stock account for $10,000 ($2/share * 5,000 shares) and credit the additional paid-in capital account for $190,000 ($38/share * 5,000 shares).
If the company had instead issued the 5,000 common shares as no-par stock with a market value of $40/share, the company would debit the cash account for $200,000 and credit the common stock account for $200,000 (the additional paid-in capital account is not affected by no-par stock).
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This Lecture 7 of financial management is about PAR value, Market Value, Book Value. This financial management lecture explains these topics in Urdu & Hindi language with help of EXAMPLE.
A) Topics explained in this financial management lecture:
-PAR value
-book value
-market value
-par value vs book value vs market value
-Calculation of Book Value using balance sheet
B) Description / Notes of financial management lectures in urdu:
-PAR value is the price which on which your shares are issued by the concerned authority.
-Market value is the current price of your share in the trading market or it is the price which investors are ready to pay for your shares.
-Book value is the price which is calculated from the balance sheet.
- book value per share can be done by using the Net SHE, preferred dividends & number of common shares from the balance sheet, the formula of book value is given in this video.
C) Language Used in financial management lecture 7:
-Hindi
-Urdu
we made this financial management in hindi / financial management in urdu and describes par value in hindi, market value in hindi so that students in pakistan & indian universities can take full advantage of this video.
D) Watch full lecture in order to understand the following concepts:
-how to calculate book value per share from balance sheet
-calculate book value from balance sheet
-market value vs book value
-market value of equity
-book value per share
-book value vs market value
-book value in accounting
-par value stock explained
-par value stock
-financial
-management
Par value, in finance and accounting, means stated value or face value. From this come the expressions at par (at the par value), over par (over par value) and under par (under par value).
Bonds
A bond selling at par is priced at 100% of face value. Par is also used to refer to its original issue value or its value upon redemption at maturity. This amount is typically $1000 per bond.
Stock
Par value stock has no relation to market value and, as a concept, is somewhat archaic. The par value of a share of stock is the value stated in the corporate charter below which shares of that class cannot be sold upon initial offering; the issuing company promises not to issue further shares below par value, so investors can be confident that no one else will receive a more favorable issue price. Thus, par value is the nominal value of a security which is determined by the issuing company to be its minimum price. This was far more important in unregulated equity markets than in the regulated markets that exist today, where a stock issuance prices must usually be published. The par value of stock remains unchanged in a bonus stock issue but it changes in a stock split.
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