Below par

Below Par
Below Par definition :
Less than the nominal or face value of a security.
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Below par
Less than the nominal or face value of a security.
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Below Par
See: Par
Beneficial Owner
The person(s) entitled to the benefits of ownership even though another party such as a broker or bank--the nominal owner--actually has possession and title to the security.

Below par:
A share or a bond whose market value is below its nominal value or face value. A bond will be rated below par when the market interest rates are higher than at the time the bond was issued.

Below Par
A price below the face value (par value) of a security.
Benchmark
An index or other market measurement which is used by a fund manager as a yardstick to assess the risk and performance of a portfolio.

below par Selling for a price below par value.
below investment grade bond Junk bond.
Berger, Michael Manager of the Manhattan Fund, a hedge fund that defrauded investors during the 1990s.

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Also known as Below Par Value. A security is said to be selling at a discount when the market value is below the par value of the security.

Each of the below participants can and often do have multiple roles in the construction process.
Contractors ...

A bond selling below par.
Discount Securities:
Non interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value. E.g. Canadian and U.S. Treasury Bills.

A bond selling below par; a "Pure" Discount Bond is one without coupon and always sells below par. See also Discount Basis.
Discount Broker ...

Deed of trust See: Indenture Deep-discount bond A bond issued with a very low coupon or no coupon that sells at a price far below par value. A bond that has no coupon is called a zero-coupon bond.

accrual of discount The annual addition to book value contributed by bonds purchased below par.The...

Deep-discount bond A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it is called a zero coupon bond.

The significance is more psychological then economic, but the long decline of the Canadian dollar "below par" with the U.S. dollar, and the more recent variation of the euro between above and below par, also with the U.S.

Investor displeasure was perhaps on account of the below par performance from the company in the December quarter. Hindusthan unilever reported a drop in bottomline to the tune of around 2% although its topline grew by 12% YoY.

A new bond issue that is usually offered below par. The bond's value is increased (accreted) over its life from the original discounted price up to par. At the bond's maturity, it will be valued at par.

In the United States, it is legal for a corporation to issue "watered" shares below par value.

Debt that is initially offered at a price below par.
Similar financial terms
Original maturity
Maturity at issue. For example, a five year note has an original maturity of 5 years; one year later it has a maturity of 4 years.

debt that is initially offered at a price below par.
Public offering
The sale of registered securities by the issuer (or the underwriters acting in the interests of the
issuer) in the public market. Also called public issue.

Bonds which sell at a dollar price below par in which case the yield would exceed the coupon rate.

DISCOUNT BONDS - Bonds which sell at a dollar price below par in which case the yield would exceed the ...
DISCOUNT BROKER - As opposed to full service brokers, a discount broker charges a lower fee for executi...

If a tax-free bond fund buys a municipal bond at a discount (price below par) and sells it for profit, a portion of that capital gain may be taxed at the investor's ordinary income tax rate, provided the discount is sufficiently large.

A bond issued with a very low coupon or no coupon and selling at a price far below par value. When the bond has no coupon, it is called a zero coupon bond.
De facto
Existing in actual fact although not by official recognition.

Debt that is initially offered at a price below par.
Original margin
The margin needed to cover a specific new position. Related: Margin, security deposit (initial).

Its policy greatly benefited commerce, but invited bitter complaints from the private dealers in exchange, who had been enabled to make excessive profits while the currency was below par, ...

Discount Bond: A bond selling below par.
Discount Rate: The annual percentage rate used to determine the present value of future cash flows.

You buy zeros, usually in denominations of $1,000 per bond, at prices far below par value. While you hold the bonds, say over a 10-year period, you receive no interest-hence the term zero coupon-since coupon means interest in bond terminology.

ORIGINAL ISSUE DISCOUNT (OID) " A new issue bond offered at a discount (below par). The bond's value must be increased (accreted) over its life from the original discounted price up to par. See: Accretion.

Related: Benchmark issues.
Below par
Less than the nominal or face value of a security.
Benchmark ...

Par value shares are common or preferred shares that endorse a face value as indicated in the articles of incorporation and on the share certificate. Shares issued below par value are issued at a discount.

Discount Bond A bond that sells at value below par value.
Discount Broker Brokerage services provided at a cost lower than full-service brokers.

If you purchase the security in the secondary market, at a price above or below par, your actual yield will be more or less than the coupon rate.

Purchase Fund. A method whereby the company purchases a stated number of shares each year, but only below par value. This helps to support the market price of the shares.

Treasury bills do not pay interest but are sold at a discount (below par). The difference between the issue price and the par value at maturity represents the income which the lender or purchaser receives in lieu of interest.

Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.

Equal. An equality between the face value of a bill of exchange, share of stock etc., and its actual market value. If it can be sold for more, it is "above par;" if for less, it is "below par."
Par Exchange Rate ...

For example, the discount on a preferred stock or bond is the amount by which it is currently selling below par or face value.

Because the issuer will buy its own bonds on the open market to satisfy its sinking fund requirements if the bonds are trading below PAR , there is to that extent automatic price support for such bonds; ...

If you sell, you must settle for the price you can get and potentially take that loss. Market prices can also fall below par if the bonds are downgraded by an independent rating agency because of problems with the company's finances.

A large discount for a financial instrument. The condition that exists when a financial instrument is trading at a market price that is well below its par value. May also be used to refer to those securities selling at prices well below par.

The yield-to-average life calculation is often used in the case of a sinking fund where the issuer purchases its own bonds on the open market to fulfill its sinking fund obligations when the bonds are trading below par.

In many cases a debt security is rated by a third party and may be sold or traded on the open market. When a debt security is traded in the secondary market it may trade at par value, below par value or above par value, depending on market forces.

5%, may be a rare real-life example, but even there I understand the British Government has the right to buy them back at par, although it would take an Act of Parliament. Given their low interest rate, I would expect them to trade well below par.

A bond might be sold at above or below par (the amount paid out at maturity), but the market price will approach par value as the bond approaches maturity. A riskier bond has to provide a higher payout to compensate for that additional risk.

The most extreme version of an OID is a zero-coupon bond, which is originally sold far below par value and pays no interest until it matures.

Below par Designating a security that sells at less than face value or par value. Also discount.

Since the issuer buys its own bonds on the open market because of sinking fund requirements, if the bonds are trading below par, ...

See also: Expense, Banks, Bills, Funding, Indenture