Par Value Definition

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Definition Of Par Value:

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. In foreign exchange, the rate at which a currency is pegged, or fixed.

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