Value of Shares


The value of a shareholder’s share can rise and fall. For a quick example, John and Mary both own shares in the Goodwill Company Ltd., This company has a shared capital of 500,000$, divided into 50,000 shares of HK$10 each. The company therefore has a capital of $5000,000 each for trading. The maximum liability for Mary and John is $250,000 each. While the nominal value of shares is HK$10, the actual value of the share is determined by the market value. After several years of business, the Goodwill Company Ltd. has an asset value up to HK$2,000,000. The market value for their shares has gone up to HK$50. Mary and Johns shares are now worth over 2 Million HK dollars.

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