par value

Related to par value: coupon interest rate, Stated value

Par value


Face Value


par value

1. 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.
2. 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.

Par value.







par value

  1. the face or nominal value of a SHARE in the UK. Par values may be of any amount, though 25p or £1 are the most common par values. The par value of a share bears little relationship to its market value, which is determined by demand and supply for the shares. A company can change the par value of its shares by a reorganization or SHARE SPLIT, for example issuing four 25p par value shares for every £1 share held.
  2. the fixed price of a FOREIGN CURRENCY under a FIXED RATE EXCHANGE SYSTEM.

par value

  1. the coupon price of a FINANCIAL SECURITY; for example, the initial face value or nominal price of an ORDINARY SHARE (as opposed to its market price). For example, a JOINT-STOCK COMPANY may issue ordinary shares with a par value of, say, 25p although its market price on the STOCK EXCHANGE may be higher or lower than this par value, depending upon current demand and supply for it.
  2. The fixed price of a CURRENCY in terms of other currencies under a FIXED EXCHANGE-RATE SYSTEM.
References in periodicals archive ?
ALABAMA ASSESSES A 1% TAX ON DOMESTIC corporations based on the par value of company stock.
In the context of a par value system in which convertibility could be suspended, the United States favored an international reserve indicator as an objective gauge of whether a country's policies were consistent with overall equilibrium in the balance of payments and with adequate growth in global liquidity (at existing par values).
The Committee of Twenty recognized that the international monetary system was in flux and that it might be particularly difficult in the circumstances of the time to return to a par value system.
Under the revised article, completed in 1976, a return to a generalized par value system, if deemed appropriate, requires an 85 percent majority vote of the IMF membership, effectively giving the United States a veto over such a move.
An eventual return to a par value system was assumed, and intervention was viewed as a way to maintain order in the interim.
2)Initially, the par value of the dollar was defined by the President at $35 per ounce of gold under the authority granted to him by the Gold Reserve Act of 1934.
1) Under the Bretton Woods system, par values were established for the currencies of IMF member countries in terms of gold or the "U.