What is a 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, typically in $1,000 denominations.

Why did you take the offer at face value?

I took the offer at face value because I didn’t think they would try to trick me. Want to learn more? Improve your vocabulary with English Vocabulary in Use from Cambridge. Learn words you need to communicate with confidence.

What is the difference between par value and face value?

When referring to the value of financial instruments, there's effectively no difference between par value and face value. Both terms refer to the stated value of the financial instrument at the time it is issued. Par value is more commonly used with bonds than with stocks.

What is the face value of a bond?

If an investor purchases a bond with a $1,000 par value and a maturity date set five years down the road, then the issuing entity is required to pay the investor, or bondholder, $1,000 after the five years have passed. The face value of a share of stock is the value per share as stated in the issuing company's charter.