The face or nominal value of a security. (1) A dollar amount assigned to a share of common stock by the corporation's charter. At one time, it reflected the value of the original investment behind each share, but today it has little significance except for bookkeeping purposes. Many corporations do not assign a par value to new issues. For preferred shares or bonds, par value has importance insofar as it signifies the dollar value on which the dividend/interest is figured and the amount to be repaid upon redemption. (2)Preferred dividends are usually expressed as a percentage of the stock's par value. (3) The interest on bonds is expressed as a percentage of the bond's par value. See Face Value.