Par Value

The face value of a bond or the nominal value of a stock as stated in a company's charter. For bonds, par value is typically $1,000 and represents the amount the issuer will repay at maturity. For stocks, par value is a largely vestigial legal concept -- most companies set it at a fraction of a penny. A bond trading above par is said to be at a "premium," while one below par trades at a "discount."