Par value - Wikipedia

Par value, in finance and accounting, means stated value or face value. From this come the expressions at par (at the par value), over par (over par value) ... Parvalue FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch "Overpar"and"Underpar"redirecthere.Forthegolfterm,seePar(score). Parvalue,infinanceandaccounting,meansstatedvalueorfacevalue.Fromthiscometheexpressionsatpar(attheparvalue),overpar(overparvalue)andunderpar(underparvalue). Contents 1Bonds 2Stock 3Currency 4Seealso 5References Bonds[edit] Abondsellingatparispricedat100%offacevalue.Parcanalsorefertoabond'soriginalissuevalueoritsvalueuponredemptionatmaturity. Stock[edit] Theparvalueofstockhasnorelationtomarketvalueand,asaconcept,issomewhatarchaic.[when?]Theparvalueofashareisthevaluestatedinthecorporatecharterbelowwhichsharesofthatclasscannotbesolduponinitialoffering;theissuingcompanypromisesnottoissuefurthersharesbelowparvalue,soinvestorscanbeconfidentthatnooneelsewillreceiveamorefavorableissueprice.Thus,parvalueisthenominalvalueofasecuritywhichisdeterminedbytheissuingcompanytobeitsminimumprice.Thiswasfarmoreimportantinunregulatedequitymarketsthanintheregulatedmarketsthatexisttoday,[when?]wherestockissuancepricesmustusuallybepublished.Theparvalueofstockremainsunchangedinabonusstockissuebutitchangesinastocksplit. Inaccounting,theparvalueallowsthecompanytoputademinimisvalueforthestockonthecompany'sfinancialstatement.Parvalueisalsousedtocalculatelegalcapitalorsharecapital. Manycommonstocksissuedtodaydonothaveparvalues;thosethatdo(usuallyonlyinjurisdictionswhereparvaluesarerequiredbylaw)haveextremelylowparvalues(oftenthesmallestunitofcurrencyincirculation),forexampleapenny(USD$0.01)parvalueonastockissuedatUSD$25.00/share.Mostjurisdictionsdonotallowacompanytoissuestockbelowparvalue. Eveninjurisdictionsthatpermittheissueofstockwithnoparvalue,theparvalueofastockmayaffectitstaxtreatment.Forexample,Delawarepermitstheissueofstockeitherwithorwithoutaparvalue,butbychoosingtoassignaparvalue,acorporationmaysignificantlyreduceitsfranchisetaxliability.[1] No-parstockshave"noparvalue"printedontheircertificates.Insteadofparvalue,someU.S.statesallowno-parstockstohaveastatedvalue,setbytheboardofdirectorsofthecorporation,whichservesthesamepurposeasparvalueinsettingtheminimumlegalcapitalthatthecorporationmusthaveafterpayinganydividendsorbuyingbackitsstock. Also,parvaluestillmattersforacallablecommonstock:thecallpriceisusuallyeitherparvalueorasmallfixedpercentageoverparvalue. Thesharesinacorporationmaybeissuedpartlypaid,whichrenderstheownerofthosesharesliabilitytothecorporationforanycallsonthosesharesuptotheparvalueoftheshares. Currency[edit] Theterm"atpar"isalsousedwhentwocurrenciesareexchangedatequalvalue(forinstance,in1964,TrinidadandTobagoswitchedfromtheBritishWestIndiesdollartothenewTrinidadandTobagodollar,andthatswitchwas"atpar",meaningthattheCentralBankofTrinidadandTobagoreplacedeacholddollarwithanewone). Parvaluealsoreferstotheofficialgoldcontentofacurrency.TheActtoAmendtheParValueModificationActof1973ofSeptember21,1973loweredtheparvalueofthedollaragainstgoldfrom$35to$42.2222whereitremainstoday.Thisiswhythefacevalueofa1ozgoldcoinis$50,reflectingtheparvalueofthedollaringold. Seealso[edit] Pulltopar Wateredstock References[edit] ^Nassar,Anthony(February2004)."WatchOutForThoseFranchiseTaxes".Archivedfromtheoriginalon2011-03-17.Retrieved2010-12-30. vteBondmarket Bond Debenture Fixedincome Typesofbondsbyissuer Agencybond Corporatebond Seniordebt Subordinateddebt Distresseddebt Emergingmarketdebt Governmentbond Infrastructurebond Municipalbond Typesofbondsbypayout Accrualbond Auctionratesecurity Callablebond Commercialpaper Consol Contingentconvertiblebond Convertiblebond Exchangeablebond Extendiblebond Fixedratebond Floatingratenote High-yielddebt Inflation-indexedbond Inversefloatingratenote Lotterybond Perpetualbond Puttablebond Reverseconvertiblesecurities Zero-couponbond Bondvaluation Cleanprice Convexity Coupon Creditspread Currentyield Dirtyprice Duration I-spread Mortgageyield Nominalyield Option-adjustedspread Risk-freebond Weighted-averagelife Yieldcurve Yieldspread Yieldtomaturity Z-spread Securitizedproducts Asset-backedsecurity Collateralizeddebtobligation Collateralizedmortgageobligation Commercialmortgage-backedsecurity Mortgage-backedsecurity Bondoptions Callablebond Convertiblebond Embeddedoption Exchangeablebond Extendiblebond Puttablebond Institutions CommercialMortgageSecuritiesAssociation(CMSA) InternationalCapitalMarketAssociation(ICMA) SecuritiesIndustryandFinancialMarketsAssociation(SIFMA) vteFinancialmarketsTypesofmarkets Primarymarket Secondarymarket Thirdmarket Fourthmarket Typesofstocks Commonstock Goldenshare Preferredstock Restrictedstock Trackingstock Sharecapital Authorisedcapital Issuedshares Sharesoutstanding Treasurystock Participants Broker-dealer Daytrader Floorbroker Floortrader Investor Marketmaker Proprietarytrader Quantitativeanalyst Financiallaw Regulator Stocktrader Exchanges Electroniccommunicationnetwork Listofstockexchanges Tradinghours Multilateraltradingfacility Over-the-counter Darkpool(privateexchange) Stockvaluation Alpha Arbitragepricingtheory Beta Bid–askspread Bookvalue Capitalassetpricingmodel Capitalmarketline Dividenddiscountmodel Dividendyield Earningspershare Earningsyield Fedmodel Netassetvalue Securitycharacteristicline Securitymarketline T-model Tradingtheoriesandstrategies Algorithmictrading Buyandhold Contrarianinvesting Daytrading Dollarcostaveraging Efficient-markethypothesis Fundamentalanalysis Growthstock Markettiming Modernportfoliotheory Momentuminvesting Mosaictheory Pairstrade Post-modernportfoliotheory Randomwalkhypothesis Sectorrotation Styleinvesting Swingtrading Technicalanalysis Trendfollowing Valueaveraging Valueinvesting Relatedterms Blocktrade Crosslisting Dividend Dual-listedcompany DuPontanalysis Efficientfrontier Flight-to-quality Governmentbond Greenspanput Haircut Initialpublicoffering Long Margin Marketanomaly Marketcapitalization Marketdepth Marketmanipulation Markettrend Meanreversion Momentum Openoutcry Position Publicfloat Publicoffering Rally Returns-basedstyleanalysis Reversestocksplit Sharerepurchase Shortselling Slippage Speculation Stockdilution Stockexchange Stockmarketindex Stocksplit Trade Uptickrule Volatility Votinginterest Yield Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Par_value&oldid=1074581354" Categories:Valuation(finance)BondvaluationHiddencategories:AllarticleswithvagueorambiguoustimeVagueorambiguoustimefromJuly2019 Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk English expanded collapsed Views ReadEditViewhistory More expanded collapsed Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Languages العربيةDanskDeutschEspañolEsperantoEuskaraفارسیFrançais한국어ՀայերենBahasaIndonesiaItalianoBahasaMelayuNederlandsPortuguêsSuomiSvenskaTürkçeУкраїнська Editlinks