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Financial Terms | |
Par value |
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Definition of Par valuePar valueAlso called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date. PAR VALUEAn arbitrary value that a company may assign to its stock. par value has no relationship to what the stock is selling for on the open market. Par valueAn arbitrary value assigned by the company to each share of stock; it is used in the accounting for the sale of stock and in some jurisdictions for calculating taxes. Par ValueNominal value of a security. Same as face value. Par valueThe maturity or face value of a security or other financial Par valueThe stated value of a stock, which is recorded in the capital stock account. par valuevalue of security shown on certificate. Par ValueSee face value.
Related Terms:![]() CAPITAL IN EXCESS OF PAR VALUEWhat a company collected when it sold stock for more than the par value per share. No par value stockStock issued by the company that does not have an arbitrary value (par value) assigned to it. Parity valueRelated:conversion value Additional paid-in capitalAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par. Additional paid-in capitalAny payment received from investors for stock that exceeds additional paid-in capitalDifference between issue price and par value of stock. Also called capital surplus. Bond pointsA conventional unit of measure for bond prices set at $10 and equivalent to 1% of the $100 face Call optionAn option contract that gives its holder the right (but not the obligation) to purchase a specified Capital in excess parAmounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with additional paid-in capital. capital stockOwnership shares issued by a business corporation. A business Capital surplusAmounts of directly contributed equity capital in excess of the par value. Contributed capitalThe amount put into the business by the owners by purchasing stock and by paying more than the par value for the stock (additional paid-in capital or capital in excess of par). Crawling pegAn automatic system for revising the exchange rate. It involves establishing a par value around Dedicated capitalTotal par value (number of shares issued, multiplied by the par value of each share). Also DiscountReferring to the selling price of a bond, a price below its par value. Related: premium. DiscountThe percentage amount at which bonds sell below their par value. Also the percentage amount at which a currency sells on the forward market below its current rate on the spot market. Dividend rateThe fixed or floating rate paid on preferred stock based on par value. Face valueSee: par value. Face ValueThe nominal value of a security. Also called the par value. Face valueThe maturity value of a security. Also known as par value, face valuePayment at the maturity of the bond. Also called par value or maturity value. Face ValueThe payoff value of a bond upon maturity. Also called par value. See principal. Fixed-dollar obligationsConventional bonds for which the coupon rate is set as a fixed percentage of the par value. Maturity valueRelated: par value. New moneyIn a Treasury auction, the amount by which the par value of the securities offered exceeds that of Outstanding share capitalIssued share capital less the par value of shares that are held in the company's treasury. PaydownIn a Treasury refunding, the amount by which the par value of the securities maturing exceeds that Preferred stockA security that shows ownership in a corporation and gives the holder a claim, prior to the Premium1) Amount paid for a bond above the par value. Premium bondA bond that is selling for more than its par value. Principal valueSee par value. Purchase fundResembles a sinking fund except that money is used only to purchase bonds if they are selling Put bondA bond that the holder may choose either to exchange for par value at some date or to extend for a Redemption valueSee par value. SeriesOptions: All option contracts of the same class that also have the same unit of trade, expiration date, Stated conversion priceAt the time of issuance of a convertible security, the price the issuer effectively Stated value stockStock issued by the company that does not have a par value, but does have a stated value. For accounting purposes, stated value is functionally equivalent to par value. Terminal valueThe value of a bond at maturity, typically its par value, or the value of an asset (or an entire Treasury bondLong-term debt obligation of the U.S. government that makes Variance ruleSpecifies the permitted minimum or maximum quantity of securities that can be delivered to Account ValueThe sum of all the interest options in your policy, including interest. Accumulated ValueAn amount of money invested plus the interest earned on that money. Adjusted present value (APV)The net present value analysis of an asset if financed solely by equity administrative departmentan organizational unit that performs management activities benefiting the entire organization; approximated net realizable value at split-off allocationa method of allocating joint cost to joint products using a Benefit ValueThe amount of cash payable on a benefit. Bond valueWith respect to convertible bonds, the value the security would have if it were not convertible BONDPARA system that monitors and evaluates the performance of a fixed-income portfolio , as well as the Book valueA company's book value is its total assets minus intangible assets and liabilities, such as debt. A BOOK VALUEAn asset’s cost basis minus accumulated depreciation. Book ValueThe value of an asset as carried on the balance sheet of a Book valueAn asset’s original cost, less any depreciation that has been subsequently incurred. book valueNet worth of the firm’s assets or liabilities according book value and book value per shareGenerally speaking, these terms BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Book Value per ShareThe book value of a company divided by the number of shares business-value-added activityan activity that is necessary for the operation of the business but for which a customer would not want to pay Carrying valueBook value. Cash-surrender valueAn amount the insurance company will pay if the policyholder ends a whole life Cash Surrender ValueThis is the amount available to the owner of a life insurance policy upon voluntary termination of the policy before it becomes payable by the death of the life insured. This does not apply to term insurance but only to those policies which have reduced paid up values and cash surrender values. A cash surrender in lieu of death benefit usually has tax implications. Cash Surrender ValueBenefit that entitles a policy owner to an amount of money upon cancellation of a policy. Cash value added (CVA)A method of investment appraisal that calculates the ratio of the net present value of an Ceteris ParibusHolding other things constant. Collection DepartmentAn internal department within a company staffed by specialists in collecting past due accounts or accounts receivable. Comparative AdvantageA country has a comparative advantage over another country in the production of good A if to produce a unit of A it forgoes more of the production of good B than would the other country when it produces a unit of good A. Its efficiency in the production of good A relative to its efficiency in the production of good B is greater than is the case for the other country. See also absolute advantage. Comparative credit analysisA method of analysis in which a firm is compared to others that have a desired Comparison universeThe collection of money managers of similar investment style used for assessing Conversion parity priceRelated:Market conversion price Conversion valueAlso called parity value, the value of a convertible security if it is converted immediately. cost-benefit analysis the analytical process of comparing therelative costs and benefits that result from a specific course Cost of limited partner capitalThe discount rate that equates the after-tax inflows with outflows for capital Counterpart itemsIn the balance of payments, counterpart items are analogous to unrequited transfers in the CounterpartiesThe parties to an interest rate swap. Counterparty Partyon the other side of a trade or transaction. Counterparty riskThe risk that the other party to an agreement will default. In an options contract, the risk Debt service parity approachAn analysis wherein the alternatives under consideration will provide the firm Departmental stocksThe informal and frequently unauthorized retention of excess inventory on the shop floor, which is used as buffer safety stock. Economic Value Added (EVA)Operating profit, adjusted to remove distortions caused by certain accounting rules, less a charge economic value added (EVA)a measure of the extent to which income exceeds the dollar cost of capital; calculated economic value added (EVA)Term used by the consulting firm Stern Stewart for profit remaining after deduction of the cost Exercise valueThe amount of advantage over a current market transaction provided by an in-the-money Exit valueThe value that an asset is expected to have at the time it is sold at a predetermined Expected valueThe weighted average of a probability distribution. Expected ValueThe value of the possible outcomes of a variable weighted by the Expected value of perfect informationThe expected value if the future uncertain outcomes could be known Extraordinary positive valueA positive net present value. Face ValueThe nominal value which appears on the face of a document recording an entitlement, generally an amount of money that has to be repaid on the maturity of a debt instrument. Fair market valueThe price that an asset or service will fetch on the open market. Fair Market ValueThe highest price available, expressed in terms of cash, in an open and unrestricted market between informed, prudent parties acting at arm's length and under no compulsion to transact. Fair ValueThe amount at which an asset could be purchased or sold or a liability incurred or Firm's net value of debtTotal firm value minus total firm debt. 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