par
DefinitionThe nominal dollar amount assigned to a security by the issuer. For an equity security, par is usually a very small amount that bears no relationship to its market price, except for preferred stock, in which case par is used to calculate dividend payments. For a debt security, par is the amount repaid to the investor when the bond matures (usually, corporate bonds have a par value of $1000, municipal bonds $5000, and federal bonds $10,000). In the secondary market, a bond's price fluctuates with interest rates. If interest rates are higher than the coupon rate on a bond, the bond will be sold below par (at a "discount"). If interest rates have fallen, the price will be sold above par. here also called face value or par value.
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par is ...
... part of the Bonds, Futures, Mutual Funds, Options, Stocks and Investor Relations subjects.
... part of the Bonds, Futures, Mutual Funds, Options, Stocks and Investor Relations subjects.
Related Terms
at par -
coupon -
discount -
deep-discount bond, premium bond, dollar price, baby bond, full stock, maturity value, Original Issue Discount, bond discount, bond quote, Series EE bond
par appears in these other terms
pari passu, limited partner, participating insurance, partner, participatory note, venture capital limited partnership, partnership, participating dividend, participation loan, private limited partnership and
par appears in the definitions of these other terms on BusinessDictionary.com
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