Definition: Par Value - Examples & Advice | Bolder Money

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Definition

The face value of a bond or stock as stated by the issuer, which may differ from its current market value.

What to consider

Remember that par value is mainly used for accounting purposes.
It often doesn’t reflect the current market value.
Use it as a reference point in financial statements.

Real world scenarios

In his finance course, Adam learned that the par value of a bond was its face value, which would be repaid to investors when the bond matured.

Related terms

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