Face Value

Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, which is customarily $1,000. The face value for bonds is often referred to as "par value" or simply "par."Face value describes the nominal value or dollar value of a security; the face value is stated by the issuing party.A stock's face value is the initial cost of the stock, as indicated on the certificate of the stock in question; a bond's face value is the dollar figure due to be paid to the investor, once the bond reaches maturity.

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