The stated value of an investment/ instrument/ security. It refers to the fixed monetary value of stocks, bonds, investments, and currencies. For a share, it is the share’s stated value that will appear on its certificate and in the issuing company’s registers (and articles of incorporation). This value may be used to calculate the monetary amount of common shares on a company’s balance sheet.

For a bond (including convertibles), it is the value/ amount that the bond issuer promises to repay bondholders at maturity date. A bond is a written promise that the amount borrowed by the issuer will be repaid. The par value of a bond typically remains constant over its lifespan, and is not necessarily the value at which it is issued. However, its market value changes over its term in accordance with the changes in interest rates. A bond may trade, in the secondary market, at par (par value), below par, or above par. For example, a par bond is a bond trading at par value ($1,000). This value is also known as a redemption value.

For an investment, par value is the initial value of that investment- i.e., the monetary amount of the investment on the date it is made.

For a currency, par value is the nominal monetary amount of a currency that expresses its equivalent in another currency, as calculated based on the current official exchange rate.

The par value is also generally known a face value or a nominal value.