Par value is a term used in the stock world that might not make a whole lot of sense to the Average Joe. If you are average Joe, here is an explanation.
Par value means nothing to you. That is all you really need to know. It is used by lawyers and corporate accountants when issuing stock. It has little real world meaning.
When discussing bonds, par value is a term used for the bond face value. For preferred stock, par value is a term often used for the dividend paid by the share.
That is all you need to know. See, everything stock related is not complicated.
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