Par Value*

2015 07 01 | Category: Offshore Glossary

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Par Value*
A minimum value of a share below which the share cannot be issued, as designated in the articles of incorporation. For an equity security, par is usually a very small amount that bears no relationship to its market price, except for preferred stock, in which case par is used to calculate dividend payments. For a debt security, par is the amount repaid to the investor when the bond matures (usually, corporate bonds have a par value of $1000, municipal bonds $5000, and federal bonds $10,000). Also called maturity value, face value or par.


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