Par value

The face value of a security, as printed on its physical certificate

For stocks, the par value indicates the fraction of a company's nominal capital that is represented by a single share. Thus, the total par value of all the shares in a company is equivalent to its nominal capital, or capital stock. In Germany, stocks must have a par value of at least one euro. Since the launch of the euro, companies have also been able to issue of no-par shares.

For bonds, the par value represents a fraction of the total debt issued. It is the amount which is paid to the bondholder upon maturity of the bond.

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