Different values of equity shares

1. Par Value. It is the value of the share stated in the Memorandum of Association and the share certificate. The shares may be issued at different denominations. But the most common denominations are Rs. 10 and Rs. 100
2. Issue price. It is the price at which the shares are issued to the public. The issue price and the par value will be the same for a new company. But in the case of an existing company which has reserves and increased earning capacity, the issue price may be higher than the par value. When the shares are issued above par value, the difference between the issue price and the par value is termed as share premium.
3. Book Value. It is the ratio of reserves and surplus to the paid-up capital. When the reserves and surplus increase, the book value of equity share also will increase.
4. Market value. It is the price at which it is bought and sold in the security market. In the case of a company which has listed its shares in the market, it is easy to find out the market value of its equity share as it is quoted in the market quotation.