What does "Par Value" mean?
Lee McMahon avatar
Written by Lee McMahon
Updated over a week ago

Par value is the face value of a share that is set by a company when it first issues a new type of share. Par value may also be referred to as nominal value.

In most cases, shares are issued and allocated at a small insignificant value - for example at USD 0.01 per share. So in practice, a shareholder will pay very little for their shares, and won’t need to pay anything else in the future. Shares cannot be issued for a payment that is less than their par value.

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