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These are :
1. Book-value
2. Par Value
3. Value at a Premium
4. Value at a Discount
5. Quoted Value
6. Market Value
7. Fair Market Value
8. Intrinsic Value
9. Yield Value
They are discussed below1. Book-value: Book value of share is the value stated in the Articles of Association. It is also
known as Face Value or Nominal value and shown in the books of accounts and Balance Sheet.
2. Par Value: Par value is the nominal or face value of a share.
3. Value at a Premium: If shares are sold or issued at a price more than the book value, then it is
called value at a premium. Suppose shares of Rs. 10 each are sold or issued at Rs. 12 each, this
value of Rs 12 is called value at a premium. Rs. 2 is premium paid on the share of Rs. 10.
4. Value at a Discount: If shares are sold or issued at a price lower than their book or face value,
it is called Value at a Discount. If a share of Rs. 10 is sold at Rs. 9, then it is a case of Value at a
Discount. But for all accounting purpose, the book value of Rs. 10 is recorded.
5. Quoted Value: Quoted value is the value of a share stated by the stock exchange at the end of a
days trade.
6. Market Value: Market value of a share is the price at which the share is purchased or sold in
the market. For all practical purposes, stock exchange quoted price is taken as the market price.
7. Fair Market Value: It is the price of a share which agreed in an open and unrestricted market
between knowledgeable and willing parties dealing at arms length who are fully informed and
The factors which influence the value of shares can be broadly classified into two groups- internal and external factors. They
are stated below(i) Internal factors:
1. Net worth of Assets (realisable value of all assets minus all liabilities)
2. Earning capacity of assets
3. Return on investments
4. Profit after tax
5. Profit available to equity shareholders
6. Earnings per share
7. Dividend per share or Rate of dividend.
(ii) External Factors:
1. General economic condition of the country.
2. Political and social environment.
3. International economic scenario.
4. International political environment.
5. Demand for shares.
6. Growth prospect of the industry.
7. Transparency in information flow.
8. Insider trading
9.General impulse in capital and securities market.
10. Investors education and their perspective towards capital market.