What is the meaning of present value?
Present Value means the current value of future cash flows
discounted at the appropriate discount rate. Say I gave you a
document promising to give the bearer $100,000 on a particular
date. If the date was tomorrow, you could sell the document today
for close to $100,000. If the date was 100 years from now, the
document is close to worthless.
On the settlement date, it's worth $100,000.
The "present value" is the value right now of a promise to pay
in the future. Usually you calculate the present value based on the
period of time and an interest rate, also known as the discount
rate.
Related Q&A：
Oh boy, let me explain this to you. Forfeiture of shares basically means when a shareholder fails to meet certain conditions or obligations set by the company, and as a result, the company takes back those shares. Shares can be forfeited if, for instance, a shareholder doesn't pay the subscription money on time or breaks some important rules of the company. As for whether forfeited shares can be reissued, well, it depends on the company's policies and decisions. Sometimes they can be reissued to new shareholders or used in other ways to benefit the company. Hope that makes sense to you!
