parverdien

Parverdien, or par value, is the nominal or face value assigned to a security by its issuer. It serves as a stated value for certain instruments, most commonly stocks and bonds, and can vary by jurisdiction and instrument type. The par value is not the same as the instrument’s market price, which is determined by supply, demand and other market factors.

In equity securities, par value per share is the minimum legal capital designated in the company’s charter. It is used for accounting and legal purposes, rather than as a guide to price. When shares are issued, the accounting entries typically record the cash received at the par value to the common stock account and any amount paid above par to additional paid-in capital. Some markets allow no-par or zero-par stock, in which case a par value may be absent or symbolic.

In debt securities, par value (also called face value) is the amount repaid to the bondholder at maturity. Coupon payments are usually calculated as a fixed percentage of par value. For example, a bond with a $1,000 par value paying a 5% coupon yields $50 per year in interest, regardless of the bond’s trading price in the market. Bond prices fluctuate around par based on interest-rate changes, credit risk, and time to maturity.

Par value remains a foundational concept for legal capital and issuer liability in equity, and for repayment and coupon calculations in debt. In modern practice, its practical importance varies by jurisdiction and instrument, and many securities operate with no meaningful par value beyond a nominal reference.