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.