Par Value is the nominal or face value of a bond, share of stock, or coupon as indicated on a bond or stock certificate.
The certificate is issued by the lender and given to a borrower or by a corporate issuer and given to an investor
Par value is the minimum amount at which a market instrument is issued to investors. It is also referred to as face or nominal value.
Par value is a primary component in the context of fixed-income securities such as
if a company issues bonds with a par value of Rs. 100 per bond and a lender holds 1000 such securities, at maturity, the organization is liable to repay Rs. 1 Lakh to such lender.
Par value of stocks
Par value of bonds
Par value of preferred stocks
Let's assume that a share of common stock has a par value of $0.01 and is sold to an investor for $25. The corporation issuing the stock will debit Cash for $25.00 and will credit Common Stock for $0.01 and will credit Additional Paid-in Capital for $24.99.