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Par Value (Noun)

Meaning

The value of a security that is set by the company issuing it; unrelated to market value.

Classification

Nouns denoting possession and transfer of possession.

Examples

  • The par value of the company's common stock was set at $1 per share when it was first issued.
  • The bond's par value was $1,000, which would be repaid to investors at maturity.
  • The par value of the preferred stock was higher than that of the common stock due to its priority in dividend payments.
  • When the company issued new shares, it set the par value at $0.01 per share to minimize the impact on existing shareholders.
  • The par value of the treasury bond was $10,000, but its market value fluctuated based on interest rates and economic conditions.

Synonyms

  • Face Value
  • Nominal Value
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