Par value
Par value is an arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Par value. An arbitrary value that is placed on each share of stock. Par value represents legal capital and not market value.
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Par value. The nominal or face value of a stock or bond. The par value of a bond generally represents the amount of money that the firm borrows and promises to repay at some future date. The par value of a bond is often $1,000, but it can be $5,000 or more.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Par value. The face value of a bond.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
