Par Value

Business / Taxes / Par Value: Par value is the face value, or named value, of a stock or bond. With stocks, the par value, which is frequently set at $1, is used as an accounting device but has no relationship to the actual market value of the stock. But with bonds, par value, usually $1,000, is the amount you pay to purchase at issue and the amount you receive when the bond is redeemed at maturity. Par is also the basis on which the interest you earn on a bond is figured. For example, if you are earning 6% annual interest on a bond with a par value of $1,000, that means you receive 6% of $1,000, or $60. While the par value of a bond typically remains constant for its term, its market value does not. That is, a bond may trade at a premium, or more than par, or at a discount, which is less than par, in the secondary market. The market price is based on changes in the interest rate, the bond's rating, or other factors.

Other Words for Par

Par Verb Synonyms: level, rank, standing, scale, standard
Par Noun Synonyms: standard, normal, average, expected
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Face Value

Business / Taxes / Face Value: Face value, or par value, is the dollar value of a bond or note, generally $1,000. That is the amount the issuer has borrowed, usually the amount you pay to buy the bond at the time it is issued, and MORE

Value

Business / Debt / Value: The worth or desirability of something expressed as an amount of money. MORE

No-Par Stock

Business / Accounting / No-Par Stock: Stock that does not have a par value printed on the face of the stock certificate. MORE

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