Balance Sheet
Par Value
A stated “face value” for a share class in an issuer’s charter or prospectus. For preferred stock, par value is often the reference amount for dividends, redemption terms, and liquidation preference (e.g., $25 or $100).
Why it matters
Par value anchors how investors interpret price and yield: trading above/below par affects effective yield, perceived risk, and whether the market is pricing in stress or a change in dividend policy.
How we calculate or source it
Par value is set by the issuer and disclosed in the security’s governing documents (certificate of designation/prospectus). It is not derived from market prices.