Face ValueFinancial Dictionary -> Investing -> Face Value
The amount paid to a bondholder at the maturity of the bond (as long as the issuer doesn't default) is also referred to as the face value or par value in the investment bond business; however bonds sold and traded on the aftermarket fluctuate along with interest rates. Interest payments on bonds are a percentage of the face value. On maturity the value of the bond is more or less of the face value.
The face value of common stock is indicated on the stock certificate although this often bares no relationship with its current worth in the market place; however with preferred stock, the face value is used to calculate the amount of dividend payments to make to shareholders.