Sound Value of Securities Law and Legal Definition

Sound value of securities means an estimated value of securities not dealt in sufficiently to establish a market value by resort to market quotations. It is the par value of long-term securities which are held, not for sale on the market, but as investments, where there has been no default in payment of interest or of instalments of principal and there is absent any appraisal or offer for sale or other circumstance which indicates their value to be less.