Business Term to Know: Par Value

Par value is another term meaning the face value of something, in particular finance or accounting items. This term is often used with stocks and bonds. Par value is used as an accounting device for stocks despite it not having a relationship with the actual market value of the stock. With bonds, the par value is the amount paid at issuance and later the amount given when the bond is redeemed – hopefully after it has hit a mature level through interest.