# par value

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Related to par value: coupon interest rate, Stated value

## Par value

Also called the maturity value or face value; the amount that an issuer agrees to pay at the maturity date.

## Face Value

The amount of money stated on a bond or (rarely) a stock certificate. For example, if a bond certificate says \$1,000, the face value is \$1000. Bonds pay the face value at maturity, and calculate coupons as a percentage of the face value. Many bonds are issued at their face value, though discount bonds are not. The face value is also called the par value or simply par.

## par value

1. The stated value of a security as it appears on its certificate. A bond's par value is the dollar amount on which interest is calculated and the amount paid to holders at maturity. Par value of preferred stock is used in a similar way in calculating the annual dividend. Also called face value, par.
2. The minimum contribution made by investors to purchase a share of common stock at the time of issue. Par value is of no real consequence to investors; in fact, many new common stock issues have no stated par value. Also called par. See also no par.

## Par value.

Par value is the face value, or named value, of a stock or bond.

With stocks, the par value, which is frequently set at \$1, is used as an accounting device but has no relationship to the actual market value of the stock.

But with bonds, par value, usually \$1,000, is the amount you pay to purchase at issue and the amount you receive when the bond is redeemed at maturity.

Par is also the basis on which the interest you earn on a bond is figured. For example, if you are earning 6% annual interest on a bond with a par value of \$1,000, that means you receive 6% of \$1,000, or \$60.

While the par value of a bond typically remains constant for its term, its market value does not. That is, a bond may trade at a premium, or more than par, or at a discount, which is less than par, in the secondary market.

The market price is based on changes in the interest rate, the bond's rating, or other factors.

## par value

1. the face or nominal value of a SHARE in the UK. Par values may be of any amount, though 25p or £1 are the most common par values. The par value of a share bears little relationship to its market value, which is determined by demand and supply for the shares. A company can change the par value of its shares by a reorganization or SHARE SPLIT, for example issuing four 25p par value shares for every £1 share held.
2. the fixed price of a FOREIGN CURRENCY under a FIXED RATE EXCHANGE SYSTEM.

## par value

1. the coupon price of a FINANCIAL SECURITY; for example, the initial face value or nominal price of an ORDINARY SHARE (as opposed to its market price). For example, a JOINT-STOCK COMPANY may issue ordinary shares with a par value of, say, 25p although its market price on the STOCK EXCHANGE may be higher or lower than this par value, depending upon current demand and supply for it.
2. The fixed price of a CURRENCY in terms of other currencies under a FIXED EXCHANGE-RATE SYSTEM.
References in periodicals archive ?
ALABAMA ASSESSES A 1% TAX ON DOMESTIC corporations based on the par value of company stock.
In the context of a par value system in which convertibility could be suspended, the United States favored an international reserve indicator as an objective gauge of whether a country's policies were consistent with overall equilibrium in the balance of payments and with adequate growth in global liquidity (at existing par values).
capital of the Company was 1,098,919,854 ordinary shares, par value NIS
50 Series, \$100 par value, 98,288 shares, currently callable at \$101.
The firm served as book-running manager on 306 issues equating to a par value of \$6.
992435 share of GM \$1-2/3 par value common stock for each PERCS is equivalent to the call price of \$53.
The Fund will redeem 100% (2,050 shares) of its then outstanding Series W Auction Rate Preferred Shares par value \$.
The senior and class III/IV par value ratios have increased marginally since the last review due to the de-levering of over 31% of the class I notes during this time.
a publicly held Delaware corporation engaged in the provision of services, facilities and equipment to the medical and chiropractic professions ("Americare"), announces that its stockholders have approved a corporate recapitalization reverse splitting Americare's common stock on a one share for five currently held basis, increasing the par value of its common stock to \$.
10 par value, into Ordinary Shares with no par value.
01 par value per share common stock in the ratio of 1 for 2, effective August 15, 2006; E[acute accent](iv) obtained a new Cusip Number which is 362985 10.
OTC Bulletin Board: SWII) announced today that it had effected a reverse split of its outstanding common shares and increased the par value of the common shares.

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