Par Value

Par value is the nominal or face value assigned to a security or financial instrument, such as a stock or bond, at issuance. For stocks, it originally represented the minimum price per share and is usually a small amount, like $0.01 or $1. If a company issues shares with a par value, it’s mainly a legal or accounting concept, not the market value. For bonds, par value is the amount the issuer agrees to repay the holder at maturity. Overall, it’s a baseline figure used for legal purposes and accounting, rather than reflecting the actual market price or value.