par value (Meaning)
Wordnet
par value (n)
the value of a security that is set by the company issuing it; unrelated to market value
Synonyms & Antonyms of par value
No Synonyms and anytonyms found
par value Sentence Examples
- The par value represents the face amount of a bond or stock that is stated on its certificate.
- Investors often buy bonds at a price below par value, then collect interest payments until maturity when they receive the par value.
- The par value of a preferred stock typically does not fluctuate as much as the par value of a common stock.
- In case of liquidation, preferred stockholders receive par value plus any accrued dividends before common stockholders.
- The par value of a share of common stock is often arbitrary and has little bearing on the market price.
- Some companies issue no-par value stocks, which have no stated par value.
- Convertible bonds allow holders to exchange them for shares of common stock at a predetermined par value.
- The par value of a bond does not include accrued interest, which must be paid at maturity along with the par value.
- Callable bonds can be redeemed by the issuer at a price typically set at or above par value.
- The par value of a bond is not necessarily the same as its current market value, which reflects factors such as interest rates and economic conditions.
FAQs About the word par value
the value of a security that is set by the company issuing it; unrelated to market value
No synonyms found.
No antonyms found.
The par value represents the face amount of a bond or stock that is stated on its certificate.
Investors often buy bonds at a price below par value, then collect interest payments until maturity when they receive the par value.
The par value of a preferred stock typically does not fluctuate as much as the par value of a common stock.
In case of liquidation, preferred stockholders receive par value plus any accrued dividends before common stockholders.
