What is Face value, par value or principal | Capital.com

Face value, also called par value or principal, are all investment terms used to describe the nominal value of a security. For bonds this is the amount that the ... capital.comCapitalComBelCapitalComAustraliaLimited Australia(RegulatedbyASIC)CapitalComUKLimited AuthorisedandregulatedbytheFinancialConductAuthority(FCA)CapitalComSVInvestmentsLimited Cyprus/EU(RegulatedbyCYSEC)CapitalComBel (RegulatedbyNBRB)OurGlobalOffices Markets Indices Forex Commodities Cryptocurrencies Shares 30m1h4h1d1w NameSellBuyChg%CrudeOil99.0299.04+5.530%TradeNASDAQ10013879.513883.1-0.880%TradeBitcoin/USD40878.5040978.50-0.700%TradeRipple/USD0.784360.79916+0.480%TradeEthereum/USD2790.412797.01+0.840%TradeGold1937.171937.61+0.550%TradeDAX4014275.314278.8-1.470%TradeGold1937.171937.61+0.550%TradeCopper4.64704.6505+0.480%TradeCrudeOil99.0299.04+5.530%TradeSilver25.20925.229+0.540%TradeNaturalGas4.8634.868+1.930%TradeBrentOil101.79101.83+5.610%TradeUSCrudeOilFuturesApr2022102.96103.06+5.500%TradeNickelSpot61714.4164060.59-TradePlatinum1014.141021.14-0.090%TradePalladium2430.252459.53+2.530%TradeMSCISingapore25321.7322.5-0.400%TradeS&P5004342.94343.9-0.690%TradeNASDAQ10013879.513883.1-0.880%TradeCBOEVolatilityIndex27.6128.02+0.330%TradeHangSeng5021276.021304.0-0.340%TradeDAX4014275.314278.8-1.470%TradeDowJones303395433961-0.600%TradeFTSE1007310.47311.3-0.120%TradeNIFTY5017326.517331.5+0.050%TradeCAC406561.36563.1-0.740%TradeBitcoin/USD40878.5040978.50-0.700%TradeLitecoin/USD109.71110.71+0.270%TradeEthereum/USD2790.412797.01+0.840%TradeRipple/USD0.784360.79916+0.480%TradeStellar/USD0.187230.18905+0.120%TradeTRON/USD0.060460.06126-0.150%TradeCardano/USD0.841260.84878+1.820%TradeDogeCoin/USD0.116360.11838+0.820%TradeShibaInu/USD0.000022260.00002269-0.130%TradeVeChain/USD0.048810.04982+1.840%TradeSingaporeAirlinesLimited5.165.23+1.380%TradeShengSiong1.51531.53470.000%TradeDBS34.5734.85+0.230%TradeAlibaba101.49101.70-3.310%TradeNIOLimited18.2918.36-3.130%TradeTesla827.56833.09-1.290%TradeAMC14.9115.18-0.800%TradeGameStop85.4086.45-1.370%TradeMetaPlatformsInc.201.72202.01-1.010%TradeNvidia242.48242.92-1.170%TradeUSD/SGD1.355041.35516-0.270%TradeUSD/CAD1.266021.26622-0.110%TradeUSD/JPY118.712118.724+0.010%TradeEUR/GBP0.842270.84247+0.390%TradeGBP/USD1.311741.31198-0.190%TradeEUR/USD1.104971.10507+0.190%TradeAUD/USD0.733930.73399+0.690%TradeGBP/JPY155.725155.748-0.210%TradeEUR/JPY131.179131.193+0.150%TradeUSD/CHF0.939800.93989-0.060%TradeDirexionDailySemiconductorBull3XShares35.7435.83-2.400%TradeVanEckVectorsRussiaETF5.926.00-TradeProSharesUltraVIXShort-TermFuturesETF16.9216.99-15.530%TradeDirexionDailyS&P500Bear3XShares19.9420.01-6.690%TradeiShares3-7YearTreasuryBondETF---TradeiShares7-10YearTreasuryBondETF---TradeiSharesTrust-iSharesMBSETF102.44102.61-0.130%TradeiShares1-3YearTreasuryBondETF83.8283.97-0.110%TradeiSharesShortTreasuryBondETF110.18110.350.000%TradeiSharesMSCIACWIexU.S.ETF51.4651.61+4.570%TradeProducts ProductsCFDtrading Chargesandfees PlatformsMobileApps WebPlatform MetaTrader4 TradingView EducationInvestmate NewsandAnalysis News Analysis Insights Explainers Datajournalism MarketupdatesWebinars Economiccalendar Capital.comTV Learntotrade Thebasicsoftrading Glossary Courses PopularmarketsguidesSharestradingguide Commoditiestradingguide Forextradingguide Cryptocurrencytradingguide Indicestradingguide ETFstradingguide TradingguidesWhatisamargin? CFDtradingguide Tradingstrategiesguide Tradingpsychologyguide About About Whitepaper ViktorProkopenya Capital.comvscompetitors WhyCapital.com? OurGlobalOffices IsCapital.comsafe? Compliance Careers MediaCentre Anti-moneylaundering PartnerwithusReferralprogramme PartnershipProgramme Supportcenter CapitalSystemstatus Gettheapp x LogInTradeNowMyaccount ScantoDownloadios&AndroidAPP LearntotradeThebasicsoftradingGlossaryFacevalue(parvalue,principal)ShareArticleFacevalue(parvalue,principal) Whatisfacevalue(parvalueorprincipal)?Facevalue,alsocalledparvalueorprincipal,areallinvestmenttermsusedtodescribethenominalvalueofasecurity.Forbondsthisistheamountthatthebondholderwillreceivewhenthebondmatures.Forstocks,thisisthevaluepersharefromtheissuer.Wherehaveyouheardaboutfacevalue?Takingsomethingatfacevalueisawidelyusedidiommeaningtoacceptsomethingasitappears.Thisisthesamewhentalkingaboutbonds–atfacevaluethebondmightbeworth$1,200,butthispricemayincreaseordecreaseaccordingtointerestratesandtheissuer’smarketposition.Whatyouneedtoknowaboutfacevalue.Thefacevalueistypically$1,000foracorporatebondintheUS,$5,000foramunicipalbondand$10,000foragovernmentbond.Thisisusedtoindicatewhenabondissellingatadiscount(belowfacevalue),oratapremium(abovefacevalue),soinvestorscanreduceriskswhenbuyingorselling.Facevalueisimportantwhenmakingbondcalculations,suchasinterestpayments,marketvalues,discountsandpremiums.Althoughthepriceofabondisinfluencedbyitsfacevalue,thisisnotnecessarilythesameasthebond’smarketvalue. ShareRelatedTermsInterestRatesWhatisinterest? Haveyoueveraskedyourself“whatisinterest?”.Theshort... WanttolearnmoreaboutCFDtrading?Showme Latestvideo Newtotrading?LearntotradewithCapital.comPracticeforfree RelatedarticlesMonero(XMR)priceprediction:Privacy-enhancedcryptobyMohadesaNajumiRevealed:UK-listedcompaniesthatmaybenefitfromvideogameboombyRobGriffinWallStreetwake-up:TheFedraisesrates,weeklyjoblessclaimsfallbyJennyMcCallFilecoinpriceprediction:canFILrecoverrecentlostgains?byNicoleWillingViewallarticles Stilllookingforabrokeryoucantrust?Jointhe345.000+tradersworldwidethatchosetotradewithCapital.com 1.Create&verifyyouraccount 2.Makeyourfirstdeposit3.You’reallset.Starttrading Reviews3,896•ExcellentTrustedpartner SelectLanguageEnglish العَرَبِيَّة BahasaIndonesia BahasaMelayu Български Čeština Dansk Deutsch Eesti ελληνικά Español Français Hrvatski Italiano Latviešu Lietuvių Magyar Nederlands Polski Português Română Русский Slovenčina Slovenščina Suomi Svenska TiếngViệt ไทย 中文 Capital.comWhatisFacevalue,parvalueorprincipal