What is face value?

This is an arbitrary value of securities that is determined to find out the growth potential. This value is generally used for bookkeeping. The term generally depicts the nominal value of an asset or a security.

What is value investing?

The premise of value investing is that the market isn’t always efficient in pricing a company’s intrinsic value. A value investor seeks to exploit these inefficiencies to profit from them. This is usually by being contrarian and going against the herd (all typical value investing terms). It’s the strategy most associated with the common investing phrase ‘buy low, sell high’. The value investor seeks out value stocks that are trading below their book value.