| par value n. The value imprinted on a security, such as a stock certificate or bond, used to calculate a payment, such as a dividend or interest; face value. Also called nominal 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.
Investopedia Commentary
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.
Related Links
Bond Basics Tutorial
Stock Basics Tutorial
Advanced Bond Concepts
Retail Notes Make Bond Investing Easier
See also: Baby Bond, Denomination, Face Value, Market Value, Maturity date, Original Issue Discount, Stock
par value
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.
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.
