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What does Par Value mean?

帮考网校2020-10-12 15:59:42
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Par value refers to the face value of a financial instrument, such as a bond or stock, that is determined by the issuing company. It is the nominal value of the security, which is used to calculate interest payments, dividends, and other financial metrics. Par value is also known as the "principal amount" or "face value" of a security. In the case of a bond, the par value represents the amount that the issuer will pay back to the bondholder upon maturity. For stocks, the par value is typically a small amount and has little relevance to the actual market value of the stock.
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