Par Value Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Par Value, written in plain English, along with examples of how it is used.

What is Par Value?

Refers to the value assigned to the equity or the stock at the initial listing of the company. This ensures the shareholders investing, that noone else is getting the stock at a price lower than par value on listing. In case of bonds, it refers to the face value of the bonds.