noun

par value

the nominal face value of a bond or share

In Banking & Finance

In more detail

1. (noun) the original or stated value of a stock or bond, printed on the certificate

2. (noun) in golf, the number of strokes an expert golfer should need to complete a hole or course

Examples

1. The bond has a par value of $1,000 and pays 5% interest annually.
2. The golfer finished the course at par, completing it in exactly the expected number of strokes.

How to use par value

Par value in finance refers to the face amount printed on a security certificate, distinct from its market price; in golf, par sets the standard for scoring a hole or course, where a score equal to par is considered excellent play. The term carries no judgmental tone in either context, though 'above par' and 'below par' have extended meanings in general usage to suggest superiority or inferiority.

Common phrases

par value stock
at par
above par
below par
par value bond

Synonyms

face value · nominal value · stated value · principal

Word family

par

A common mistake

Learners sometimes confuse par value with market price or current price, especially in investing; they are often quite different.

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