face value

Face Value

Face value of a financial instrument such as a security, or currency is its original cost. Face value is also known as par value. It is the value printed on the face of the instrument. For example, a bond with a face value of $1,000 has a principal amount of $1,000 that the issuer promises to repay when the bond matures.

The face value of a stock is the amount of money the issuer of the stock is obligated to pay the investor upon redemption or maturity. This is the price per share that appears on the stocks certificate or confirmation. It is generally equal to the original cost of the stock. If a company issues a dividend to its bank shareholders, the amount of the dividend is based directly on the stocks face value.

The face value of a currency, is the currencys value represented in the monetary unit of that currency. For example, a one US dollar bill has a face value of one U.S. dollar. It can also refer to the value of coins of the same denomination; for example, the face value of a dime is 10 cents.

Face value is the original cost of a security or a currency, which is printed on the face of the instrument. It is also known as par value. Face value is used to calculate the principal amount of a bond, the value of stock, and the value of a currency. Face value can be significantly different from its market value, which is determined by supply and demand forces in the investment markets.

Face value is the value printed on a ticket. It is also known as face value, redemption value, coupon rate or principal amount. Face value is the amount a buyer pays for a ticket and the amount he or she will receive when the ticket matures. It is the value of something that is printed on its face.

A face value can be something other than the amount you paid. The amount printed on the ticket is usually the face value, but the actual market value of an investment may be different. For example, some tickets have a face value of $100 but could be sold in the market for much more or much less.

The face value of a ticket is important when investing because it will affect the rate of return and the amount of money you can get when the investment matures. It is also important to know the face value when trading securities. If someone sells you a ticket with a face value of $100 but the market rate is $200, you know the ticket is worth more than the face value.

When talking about bonds, face value refers to the amount of money the issuer agrees to pay for their bond when it matures. This amount is based on the coupon rate given when the bond is issued. Coupon rate is the percentage of the face value that is paid as interest when the bond matures.

Face value is a simple concept but an important one when investing. Knowing the face value of an investment can help you determine the rate of return and the amount of money you can make when it matures. It is also important when trading securities so you can determine if the amount you pay reflects the actual value of the asset.