Parväärtuseks

Parväärtuseks is a term used in Estonian to refer to the nominal or face value of a financial instrument, most often a share or a bond. It denotes the stated value printed on the certificate or defined in the instrument’s founding documents and serves as the basis for certain accounting and regulatory calculations.

In the context of shares, parväärtuseks (par value) is the nominal value of one share. The company’s registered share capital is typically calculated as the par value multiplied by the number of issued shares. When shares are issued at a price higher than their par value, the excess amount is recorded as share premium. The par value can be symbolic in modern corporate practice, especially in jurisdictions that allow no-par value shares, where the capital contribution is not tied to a fixed nominal amount per share.

For bonds and other debt instruments, par value refers to the amount that will be repaid to the holder at maturity. Coupon payments are usually expressed as a percentage of the par value, making the par value a reference point for interest calculations, even if the instrument trades on the market at a different price.

The concept of par value differs in importance across jurisdictions. In some systems, it continues to define minimum capital requirements or voting rights, while in others its practical significance has diminished as markets and corporate structures have evolved. In summary, parväärtuseks indicates the original, stated value of a financial instrument, distinct from its market price.