Who determines the face value of money?
Face value is typically an arbitrary number set by the issuer, which is usually indicated on the company's balance sheets. For example, if the issuer needs to have a factory-built that has a cost of $2 million, it may price shares at $1,000 and issue 2,000 of them to raise the needed funds.
Who decides value of share?
Once a company goes public and its shares start trading on a stock exchange, its share price is determined by supply and demand in the market. If there is a high demand for its shares, the price will increase. If the company's future growth potential looks dubious, sellers of the stock can drive down its price.
How does share face value increase?
The face value does not reflect the share's current market price. For example, if good news about a company's products were to be announced, then the valuation of face value would increase. If terrible information about a company's products were to be announced, then the valuation of face value would decrease.
Can companies increase the face value of share?
Typically the face value of a share remains fixed. However, if the company decides to increase the number of outstanding shares by stock split (dividing one share into two or more), the face value will decrease in the same proportion.