Par value, also known as face value or nominal value, refers to the stated value assigned to a financial instrument, such as a bond or stock, as outlined in its contractual agreement or corporate charter. For bonds, par value represents the amount that will be repaid to the bondholder upon maturity. In the case of stocks, par value indicates the minimum price at which shares can be issued. It serves as an accounting reference point but does not necessarily reflect the current market value of the instrument. While par value is historically significant, it is less relevant today as most securities are traded based on market value rather than their par value.
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