Home  | Term of the Day | |||
| par value The nominal dollar amount assigned to a security by the issuer. For an equity security, par value is usually a very small amount that bears no relationship to its market price, except for preferred stock, in which case par value is used to calculate dividend payments. For a debt security, par value is the amount repaid to the investor when the bond matures (usually, corporate bonds have a par ... | ||||
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| Usage Example When our company issued bonds to investors, we made clear that the bonds would pay a certain interest rate, but that we considered the bonds to have a specific par value that we would use for our calculations on the sale. | ||||
Term of the Day
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Join date : 2013-01-12
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