Glossary · Investing Basics
Face Value
The nominal value of a share as stated in a company's charter. In Pakistan, most listed companies have a face value of PKR 10 per share, though this varies. For bonds, the face value is the amount repaid at maturity.
01—What is Face Value?
The definition — and what it means in practice.
Face value (also called par value) is the nominal value printed in a company’s constitutional documents for each share. It is an accounting and legal reference point, not the market price. A company may issue shares with a face value such as Rs 10, while the share can trade above or below that level on the stock exchange. For bonds, face value is the principal amount due to be repaid at maturity.
Face value matters because several common investor figures are expressed against it, even when the market price is very different. Dividend announcements, for example, may be stated as a percentage of face value, which you must convert into rupees per share to understand the cash amount. Face value is also relevant when companies change their share count through actions like stock splits, consolidations, or bonus issues, while keeping total equity consistent.
If a PSX company’s face value is Rs 10, a “50% dividend” means Rs 5 per share (before withholding tax), regardless of the market price.
- Face value is the nominal (stated) value of a share; it is not the trading price.
- On bonds, face value is the amount repaid at maturity (the principal).
- On the PSX, dividends are often declared as a percentage of face value and must be converted to Rs per share.
- Corporate actions can change shares outstanding without changing face value’s role as a reference point.
02—How face value works on the PSX
The Pakistan-specific rules, conventions, and numbers.
On the Pakistan Stock Exchange (PSX), most listed shares have a Rs 10 face value, and companies commonly declare cash dividends as a percentage of that face value. That convention helps standardise announcements across companies, but it can confuse new investors who expect the percentage to relate to the market price. Converting the percentage into rupees per share is the key step for understanding the payout.
In practice, you will see face value in corporate action notices and dividend schedules around record dates and ex-dividend dates. The cash amount you receive can also be affected by Pakistan’s withholding tax on dividends: 15% for income-tax filers and 30% for non-filers. While trading, settlement and custody mechanics (clearing through NCCPL and electronic holding at the Central Depository Company) do not change face value; it remains a reference figure.
03—Common misconceptions
Where investors most often get this wrong.
A share’s face value is what it is worth in the market.
Market value is the trading price set by supply and demand. Face value is a nominal reference used in documents and announcements.
A 100% dividend means you double your money.
On the PSX, a 100% dividend usually means Rs 10 per share when face value is Rs 10, before withholding tax. It does not mean a 100% return.
If the price falls below face value, the share is automatically cheap.
Trading below face value is not, by itself, a valuation signal. Assessing value needs fundamentals such as earnings, assets, and business risks.
04—Using face value on BSL
Where this term shows up across the platform — with live data.
- Check upcoming payouts and key dates on Ex-Dates.
- Review dividend-focused lists on Highest Dividend Yield.
- Compare shares and see key fields like face value on Stocks.
- Filter PSX shares by fundamentals using the Stock Screener.
05—Frequently asked questions
What investors ask about face value on the PSX.
Frequently Asked Questions
Face value (par value) is the nominal value assigned to each share in a company’s charter. On the PSX, most listed companies have a Rs 10 face value, though it can vary. It is a reference figure, not the market price.
Multiply the dividend percentage by the share’s face value. Example: if face value is Rs 10 and the company declares a 40% dividend, that equals Rs 4 per share (before withholding tax).
It is a common convention that standardises dividend announcements across companies with different market prices. Investors then convert the percentage into rupees per share using the face value.
Your trading profit or loss depends on the difference between your buy and sell prices (after costs), not on face value. Face value mainly matters for interpreting dividend announcements and certain corporate actions.
For a bond, face value is the principal amount that is due to be repaid at maturity. The market price of a bond can trade above or below face value depending on prevailing yields and credit risk.
06—Related terms
Keep building the picture.
A portion of a company's profits distributed to shareholders. Can be in the form of cash, bonus shares, or a combination of both.
A direct payment made by a company to its shareholders, usually from profits, expressed as a rupee amount per share. Subject to withholding tax in Pakistan.
The cutoff date for determining which shareholders are eligible to receive a declared dividend. Investors who buy shares on or after the ex-dividend date do not receive that particular dividend.
A corporate action in which a company divides its existing shares into multiple shares, reducing the share price proportionally without changing the overall market capitalisation.
Additional shares issued to existing shareholders free of charge, in proportion to their current holdings. A company may issue bonus shares instead of or alongside a cash dividend.
A fixed-income instrument representing a loan made by an investor to a borrower, typically a government or corporation. The borrower pays periodic interest and repays the principal at maturity.
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