Face value is the official number written on a security. For bonds, it is usually the amount repaid at maturity and the base for coupon calculations. For shares, par or face value is often a small legal figure that has little to do with the market price you actually trade at.

Key takeaways

  • Bond market prices are often quoted relative to face value (par).
  • Buying a bond above face value means you pay a premium; below means a discount.
  • Share face value rarely equals economic value in modern markets.
  • Always separate face value from market value when you read a term sheet.