Upon maturity, the bondholder is paid the par value, regardless of the purchase price; a bond with a par value of $100 that is purchased for $80 will yield a 25% return at maturity. Because stocks often have par values near zero, the market value is almost always higher than par but is highly changeable.May 11, 2015 read more
The valuation of financial instruments can be expressed a number of different ways. Two of the most important valuations are par value and market value. Par value, also called face value, refers to the stated value of the instrument at issuance. Market value, on the other hand, refers to the actual price investors pay for these securities. read more
The important one is market value, that you need to know! When a corporation is formed, they authorize a number of shares, some round number, 1000, 1mm etc. read more
While the face, or par, value of these securities is important, it has little bearing on the price an investor must pay to purchase a bond or a share of stock, called the market value. The market value of stocks and bonds is determined by the buying and selling of securities on the open market. read more