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| Definitions by InvestorWords.com |
| What is...? |
| par The nominal dollar amount assigned to a security by the issuer. 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); here also called face value or par value. see also at par, below par, bond, coupon, discount, deep discount bond, premium bond, dollar price, Baby Bond, full stock, maturity value, nominal, original issue discount. |
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