The face value of a stock represents the original cost of a single share of a company. Companies use the face value to declare dividends or stock splits since the market value of a stock keeps changing on a daily basis. The market value of a stock is the price that investors are willing to pay for a single share of a company. Meanwhile, share premium is the difference between the issue price and the face value of a stock. If a stock has a face value of ₹10, while the company launches its public issue at ₹60, the share premium is ₹50.
