Stock market transactions require certain knowledge and special skills. To correctly navigate the securities market, it is necessary to understand the concepts that determine their value. One of the characteristics of a share is its par price, which, unlike the market price, does not always reflect the real profitability of a given financial asset.
Instructions
Step 1
If you have stocks of this or that enterprise, carefully consider the form of the security. As a rule, the par value of a share is indicated on the form and most often does not change over the entire life of such an asset. This indicator acts as a benchmark for the value of the stock and serves as the basis for calculating some of the secondary parameters.
Step 2
If the shares are not issued in the form of printed forms, but in the form of entries on accounts, determine the par value of the share by dividing the amount of the authorized capital of the joint-stock company by the total number of issued shares:
Pn = Ca / n, where
Pn is the par value of a share in rubles;
Ca is the authorized capital of the joint-stock company in rubles;
n is the number of outstanding shares.
Step 3
Please note that in order to increase the par value of a share, a joint-stock company in some cases may register an issue of securities with a different par value, while simultaneously withdrawing old shares or share certificates from circulation (in the case of a non-cash issue).
Step 4
Distinguish the par value of a security from the market price. The latter is the price at which the asset is being sold and bought in the real market at the moment. The market price is constantly changing in the direction of decreasing or increasing, which allows you to profit from speculative activities in the securities market.
Step 5
When determining the nominal price of shares, pay attention to their type. Joint-stock companies can issue both ordinary shares and preferred ones. At the same time, the value of preferred shares, according to the law, cannot exceed a quarter of the size of the authorized capital of the company.
Step 6
When choosing securities for purchase, be guided by the information about their nominal price, which is indicated in the official information sources of specific enterprises. The issue of new shares is also usually reflected in economic publications and other open sources of information.
