what is face value and par value?
Answers
Answer:
Par value
Par valuePar value, in finance and accounting, means stated value or face value. From this come the expressions at par, over par and under par.
Par value for a share refers to the stock value stated in the corporate charter. Shares usually have no par value or very low par value, such as one cent per share. In the case of equity, the par value has very little relation to the shares' market price. Par value is also known as nominal value or face value.
Face value
Face value is simply defined as the digit itself within a number. Example: Place value of 5 in 350 is: 5*10= 50. Example: Face value of 5 in 350 is: 5. The place value of 0 is 0.
Answer:
Face value is only for bonds. It's the amount of money you will get back as principal.
There is no "par value" in bonds. Similarly, there is no "face value" for stocks.