face value
Face value is the nominal value printed on a security at the time of issuance. It can apply to currency, stocks and bonds, though it is most often used with bonds. For bonds, face value is the same as par value, meaning the amount the bondholder will receive at maturity. For stocks, face value refers to the nominal amount assigned per share in the corporate charter, representing the minimum capital a corporation must maintain for each share.
Face value differs from market value. Market value is the price at which a security trades in the public market, which may be higher or lower than face value depending on factors such as interest rates, creditworthiness, supply and demand, and investor sentiment.
[Last reviewed in August of 2025 by the Wex Definitions Team]
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