Startup Terms Glossary
What is Par Value?
The par value, or nominal value, of a share is the face value of the stock. Typically, this value is stated as $100 or $1,000, since these denominations are the most widely used values. Par value is important because it helps determine the coupon cost of stock and also contributes to its maturity date.
Par Value Examples
Examples of key features of par value:
- Example 1. Can be above or below a share’s market price
- Example 2. Par value does not play a major role in determining the market price of a share
- Example 3. Bonds can be posted at a premium or a discount of their par value.
Here’s a web page about inside par value.
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