below par

below par

Of or relating to a security that sells at less than face value or par value. For example, a $1,000 par bond with a market price of $850 is below par. Likewise, a $100 par preferred stock with a market price of $80 is below par. Fixed-income securities usually trade below par because market rates of interest are higher than they were when the securities were issued. Compare above par. See also discount bond.