Par value is the assigned, or face, value of a legal claim or financial asset. For debt securities, such as corporate bonds or U. S. Treasury securities, this is amount to be repaid at the time of maturity. For equity securities, that is, corporate stocks, this is the initial value set up at the time it is issued.
Par value, also called face value, is not necessarily, and often is not, equal to the current market price of the asset. Par value may refer to a random number given to a stock that is issued, due to the registration requirements of particular states. Not all states require a par value to be stated for shares.
