Hi,
I want to know the differences between face value and premium of shares, for example DLF had a face value of Rs:2 and issue price of 525, but when we check the Book Value of DLF we can see 19.23. When I searched net for knowing its details I found that there is a share premium account where the premium of shares will go into and only the Rs:2 that we gave actually adds up to the total equity capital. I am totally confused can someone help me with these terms.
I want to know the differences between face value and premium of shares, for example DLF had a face value of Rs:2 and issue price of 525, but when we check the Book Value of DLF we can see 19.23. When I searched net for knowing its details I found that there is a share premium account where the premium of shares will go into and only the Rs:2 that we gave actually adds up to the total equity capital. I am totally confused can someone help me with these terms.