Face Value, Bonus, Splits

Par value and share-count changes.

Face value (or par value) is the nominal value printed on a share, in Nepal usually Rs 100. It's an accounting base, not the market price. Dividends are often quoted as a percentage of face value. Ways the share count changes Bonus shares Free extra shares from retained profit. You own more shares; each is worth proportionally less. Total value unchanged. Stock split One share becomes several (e.g. face value Rs 100 → Rs 10, ten shares). Lowers price per share, aids liquidity. Rights shares Existing holders can buy new shares, often below market, to raise fresh capital. A 1:1 bonus doubles your shares. If you held 100 at Rs 500 (Rs 50,000), you now hold 200 at about Rs 250. Still Rs 50,000. Value is unchanged; only the count and price adjust. Bonus and splits don't make you richer by themselves. They reslice the same pie. What matters is whether the business keeps growing the pie.

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Basics.