What it is:
How it works (Example):
Let's assume Company XYZ bonds often have $5,000 par values and federal bonds often have $10,000 par values.$10 million in to the public. It may do so by issuing 10,000 , each with a $1,000 . That means that when each matures, the holder receive the par value of $1,000. Most have $1,000 face values, but municipal
The par values for stocks are typically $0.01 per share and are set forth in the '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, par is a pricing . When the 's price is below par, the is considered "discounted;" when the 's price is above par, the is considered "at a premium."