Par Value
Definition of '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 explains 'Par Value'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 1 cent or none at all. |
Related Definitions
Articles Of Interest
-
Callable Bonds: Leading A Double Life
Find out more about these dangerous and exciting cousins to regular bonds. -
Retail Notes: A Simpler Alternative To Bond Funds
These securities are meant to be held until maturity, removing the burden of complex pricing that sometimes plagues bonds. -
What does it mean when a bond is selling at a premium? Is it a good investment?
When the terms premium and discount are used in reference to bonds, they are telling investors that the purchase price of the bond is either above or below its par value. For example, if a bond ... -
Why would a stock have no par value?
People often get confused when they read about the "par value" for a stock. One reason for this is that the term has slightly different applications depending on whether you are talking about ... -
If the price of the bond falls, does that mean the company won't pay me the par value?
When you buy a bond, you are loaning money to the issuer. Because a bond is a loan, the interest paid to the bondholder is payment for lending the money. The interest payable is stated as a percentage ... -
Advanced Bond Concepts
Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration. -
Stock Basics Tutorial
If you're new to the stock market and want the basics, this is the tutorial for you! -
Perpetual Bonds: An Overview
A perpetual bond makes interest payments to the investor forever. This type of bond holds a certain appeal to both the issuer and buyer. -
Introduction To STRIPS
STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how. -
The Wonders Of Convertible Bonds
Ever wondered what exactly a convertible bond does? Read the features of a convertible bond and learn how important the conversion factor is to you as an investor.
Free Annual Reports