par value investment & finance definition
A
value that is printed on the face of a stock or bond certificate when it is
issued. Par value is of little significance once the stock or bond begins
trading because the price will be influenced by market activity. For a bond,
the typical par value is $1,000; the typical par value for one share of stock
is $1.
See par value in Wall Street Words
- 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.
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