Recent Examples of par value from the Web
Consider what’s going on with MBIA the parent of bond insurer National, which insures about $4 billion in par value of Puerto Rico bonds.
In 2016, an average of $201.7 million in par value worth of bonds was traded daily on BondPoint, up more than 40% from the year before, according to regulatory filings.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'par value.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of PAR VALUE
What It Is
How It Works
Stock is also assigned a par value, though it is generally a very small, arbitrary value (usually $0.01) assigned to each share. Preferred stock may be assigned a higher par value because it is often used to calculate dividends.
Why It Matters
For bonds, par value is a pricing benchmark. When the bond's price is below the par value, the bond is selling "at a discount"; when the bond's price is above par value, the bond is selling "at a premium."
The difference between a bond's price and a bond's par value cannot be overemphasized. In fact, it's one of our 3 Most Deadly Misconceptions About Bonds.
Par value 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.
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