1

par

play
noun \ ˈpär \
Updated on: 26 Jul 2017

Definition of par

1 a :the established value of the monetary unit of one country expressed in terms of the monetary unit of another country using the same metal as the standard of value
b :the face amount of an instrument of value (such as a check or note): such as
(1) :the monetary value assigned to each share of stock in the charter of a corporation
(2) :the principal of a bond
2 :common level :equality usually used with on
  • judged the recording to be on a par with previous ones
3 a :an amount taken as an average or norm
b :an accepted standard; specifically :a usual standard of physical condition or health
  • wasn't feeling up to par today
4 :the score standard for each hole of a golf course
  • The 18th hole is a par 5.
; also :a score equal to par

par

adjective
par for the course
:not unusual :normal
  • It's par for the course that she's late to the meeting.

Examples of par in a Sentence

  1. He made par on the ninth hole.

  2. She finished the 18th hole three strokes under par.

  3. He made a par on the ninth hole.

  4. She made nine pars in a row.

Recent Examples of par from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'par.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of par

Latin, one that is equal, from par equal


2

par

verb

Definition of par

parred; parring
transitive verb
:to score par on (a hole)

Origin and Etymology of par

see 1par


Financial Definition of PAR

par

What It Is

In the bond world, par is the face value of a bond. That is, the par value is the amount the issuer promises to pay the bondholder when the bond matures. For equities, the par is a very small, arbitrary value assigned to each share.

How It Works

Let's assume Company XYZ issues $10 million in bonds to the public. It may do so by issuing 10,000 bonds, each with a $1,000 face value. That means that when each bond matures, the holder will receive the par value of $1,000. Most corporate bonds have $1,000 face values, but municipal bonds often have $5,000 par values and federal bonds often have $10,000 par values.

The par values for stocks are typically $0.01 per share and are set forth in the issuer's articles of incorporation. For preferred stock, however, par values may be higher because they are often used to calculate dividends.

Why It Matters

For bonds, par is a pricing benchmark. When the bond's price is below par, the bond is considered "discounted;" when the bond's price is above par, the bond is considered "at a premium."

Par has little significance for equities because it generally does not influence the stock price itself.  The cumulative par value of all the company's shares outstanding is reflected in the shareholders' equity section of the balance sheet.



PAR Defined for English Language Learners

par

play
noun

Definition of par for English Language Learners

  • : the number of strokes a good golfer is expected to take to finish a golf hole or course

  • business : the value of a stock or bond that is printed on the paper of the stock or bond itself or that is decided upon when the stock or bond is issued


PAR Defined for Kids

par

play
noun \ ˈpär \

Definition of par for Students

1 :an equal level
  • They are two people with talents on a par.
2 :the score set for each hole of a golf course
3 :a usual or average level
  • His grades were below par.

Medical Dictionary

par

play
noun \ ˈpär \

medical Definition of par

:a usual standard of physical condition or health
  • his insulin production…is not up to par
  • —P. G. Donohue

Law Dictionary

1

par

play
noun \ ˈpär \

legal Definition of par

:the face amount of an instrument of value (as a check or note): as
a :the monetary value assigned to each share of stock in the charter of a corporation
b :the principal of a bond

Origin and Etymology of par

Latin, one that is equal, from par equal


2

par

adjective

legal Definition of par



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