face value less than 1

T

TRADERSHIVA

New Member
#1
#1
Hi Members,

I need a clarification.

Is there any shares which are available with face value less than Re.1.

If not, what happend if share split happens for shares with face value Re. 1.
 
findvikas

findvikas

Well-Known Member
#2
#2
It cannot split at that time but they can provide bonus. Usually the purpose of bringing the face value down is to cut the price of the stock and make it more affordable.. like it happening in case of Educomp.. from 3000 to 600. Another hidden motive is to save on dividend which is given on face value and a 100% dividend will mean 10 rs on a 10rs FV stock while they can give 150% dividend but still actually give away only 7.5rs on a 5rs FV stock.
 
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