Par Value

What does it mean?
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.

In Other Words...
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 $0.01 or none at all.

Related Links
Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial.

Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you!

Related Terms
Baby Bond | Denomination | Face Value | Market Value | Maturity date | Original Issue Discount | Stock

1 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z