Definition of par
- judged the recording to be on a par with previous ones
- wasn't feeling up to par today
- The 18th hole is a par 5.
He made par on the ninth hole.
She finished the 18th hole three strokes under par.
He made a par on the ninth hole.
She made nine pars in a row.
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.
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.
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.
: 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
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