par value

Par Value

1) The face value of a bond.

2) A dollar amount that is assigned to a security when representing the value contributed for each share in cash or goods.

Notes:

1) The par values for different fixed income products will vary. Bonds generally have a par value of $1,000 while most money market instruments have higher par values.

2) Stocks will typically have a par value of $0.01 or none at all.

See also: Baby Bond, Denomination, Face Value, Market Value, Maturity date, Original Issue Discount, Stock

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Par value

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

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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.