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What is the difference between Par Value, Book Value & Market Value of a Stock ??

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Question added by Mohamed Tarek Wagdy MBA CTP , Head Of Treasury , Medaf Investment
Date Posted: 2014/09/18
Muhammed Faraz Siddiq Tebha
by Muhammed Faraz Siddiq Tebha , VP Corporate & Treasury Services , Elixir Securities Pakistan Private Limited

Par value is the issue price of a share or unit. Book value means net equity divided to number of shares or unit issue which may be more or less than par value. Whereas market value means the exchangeable rate of security in markets

Abdul Wahab
by Abdul Wahab , Credit Controller , Takween Advanced Industries

Issued price is Par value/book value.

Market value is demanded price in market for share may be higher or lower thn Book value.

 

Deleted user
by Deleted user

Par Value and Book Value are the same i.e. the price for which they were issued. In Pakistan normally Par Value or Books Value of a share is PKR10 / Share.

 

Market Value of a share is the current price for which a share is being sold in a stock market.

This price never changes so long as you own the asset. On the other hand, market value is the current price at which you can sell an asset. For example, if you bought a house 10 years ago for $300,000, its book value for your entire period of ownership will remain $300,000.

Read: Book value vs market value

Ahmed Siddiq
by Ahmed Siddiq , Senior Associate , Fin-eX Outsourcing

There is no difference b/w par value and book value because stock always recorded on its par value  this is the value of stock assigned by the company to express minimum value of stock.current price of a stock in a stock exchange is a market value of stock for eg a share has a par value of  $.25/share but its trading at $1/share is a market value.If a company sells its stock more than its par value excessive amount will be recorded as reserve.

Bishnu Basyal
by Bishnu Basyal , Sr. Research and Investment Analysts , Market Pundit Research and Investment Advisory, Chandigarh (U.T.)

Par value, also known as face value, refers to the stated value of the instrument at issuance. it is determined by the issuing entity and remains unchanged over time. Whereas, market value, refers to the actual price investors pay for these securities at present. 

Book value literally means the value of the business according to its "books" or financial statements. It is the difference between a company's total assets and total liabilities as shown in the balance sheet of the company. 

Brian Takaedza
by Brian Takaedza , Senior Dealer , Mr. C Kapende

Par Value is  the issue price of a security or stock,book value is the value derived from the balance sheet of a stock where the value of stock is given by the sum of  Equity and reserves divided by number of shares in issue,while market value is the on going price of a security  determined by market forces of demand and supply.

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