Investment Dictionary - Face Value
Face value typically refers to the value of a coin, bill, bullion coin, or stamp as printed on its face by the minting authorities of the particular country.
Face Value - The face value is a securities nominal dollar value assigned by the issuer.
The cash denomination of the individual debt instrument. It is the amount of money that the holder of a debt instrument receives back from the issuer on the debt instrument's maturity date.
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The specified final amount that an issuer promises to pay to the owner of a bond at the date of maturity. Also called par value.
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Electronic Series EE bond do not have a face value that is double the purchase amount, although they do come with the same maturity value guarantees. Savings bonds continue to earn interest after reaching the guaranteed maturity value.
Face valueRelated: Par value Fair price The equilibrium price for futures con-tracts. Also called the theoretical futures price. Feasible portfolioA portfolio that an investor can construct given the assets available.
The stated value, or par value, of a bond certificate when issued and when they are redeemed at maturity. The face value never changes but the current value does. Current value for a bond is (face value x price) divided by 100.
Just like it sounds: The value a bond has printed on its face, usually $1,000. Also known as par value, it represents the amount of principal owed at maturity. The bond's actual market value may be higher or lower.
This is the value of the bond or security as printed on the document. The face value represents the amount that the issuing company promises to pay at the time of maturity.
Face value, or par value - the value at which a bond is sold.
Fast Market - Rapid movement in a market caused by strong interest by buyers and/or sellers.
Face Value and Rate of Interest: The face value (or par value) of a bond is its value at maturity, usually $1,000. It is also the value used in calculating interest payments.
Face Value (FV)
Face Value is the par value of a stock, and only has symbolic value today.
Value of a bond, note, mortgage or other security as given on the certificate or instrument. May also be referred to as par value or nominal value.
Family of Funds ...
The value that appears on the front, or face, of a bond, which represents the amount the issuer promises to repay at maturity. Also known as par or principal amount.
The nominal value or dollar value of a security stated by the issuer. For stocks, it is the original cost of the stock shown on the certificate. For bonds, it is the amount paid to the holder at maturity (generally $1,000).
Face Value Value of security shown on certificate. Also called par value, which is typically $1,000.
Face Value - The principal amount of a bond.
Factor - The decimal value, calculated monthly, that represents the proportion of the original principal amount outstanding at a given time.
Face Value - The monetary value worth of a coin. This does not necessarily correspoind to its actual worth. For example, a pre-1965 U.S. half dollar has a face value of $0.50 but its intrinsic value is tied to the price of silver and much higher.
The monetary amount printed on a security. A specification of the share held in the stock capital of a publicly held company. This price will generally be significantly different from the market value.
Forward trading refers to trading where contracts traded today are settled at some future date at prices decided today.
Face Value/ Nominal Value
The value of a financial instrument as stated on the instrument. Interest is calculated on face/nominal value.
Fixed-income Securities ...
Face value: The principal amount, or value at maturity, of a debt obligation. Also known as the par value or denomination.
Face value - The value of a bond that appears on the face of the bond, unless the value is otherwise specified by the issuing company. Face value is ordinarily the amount the issuing company promises to pay at maturity.
Face Value - Also referred to as par value, the face of a bond is the amount that the firm that issued the bond agrees to pay at maturity.
The displayed value on a bond also called principal or par value.
Fill or Kill (FOK)
The fill or kill instruction goes along with your order saying that your order must immediately be filled in its entirety or cancelled.
Face Value - The amount of money printed on the face of the certificate of a security; the original dollar amount of indebtedness incurred.
Face Value: The amount of principal owed on a debt instrument.
Fade: Selling a rising price or buying a falling price. A trader fading an up opening would be short, for example: ...
Face value: The amount on the face of a bond on which interest payments are calculated. This amount is also the amount due at maturity. May be higher or lower than market value. Also called par value.
Face value, or par value, is the dollar value of a bond or note, generally $1,000.
Face Value: Face value refers to the par, or maturity value of a security.
Fair Market Price: (See Fair Market Value) ...
The face value (par value or principal) is the amount of money a holder will get back once a bond matures. A newly issued bond usually sells at the par value.
f Face Value The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date.
See: Par value
The process of providing a market for a security. Normally, this refers to bids and offers made for large blocks of securities, such as those traded by institutions.
Face value The issuing price or "par value" of a bond, note or security as stated on the certificate. For instance, many bonds are issued at $1,000 face value -- and redeemed at maturity at that same $1,000 value.
Face Value - The debt (or loan) amount that appears on the face of the certificate and that the issuer must pay at maturity.
Factor - A decimal between 0 and 1 that represents the amount of mortgages remaining in a pool of mortgage-backed securities.
At face value, it seems difficult to believe that indebted companies would lead this list of easy stock picks in bear markets. However, during recessions, monetary policy dictates that the market needs lower rates.
At face value, the current dividend looks sustainable as long as Reynolds can grow the business at even a very modest rate in the coming years. With little need for capital investment, Reynolds generates a tremendous amount of free cash flow.
The face value of a security.
A remission of punishment or penalty without indicating exoneration from guilt.
The face value or the price of a share, debenture, or bond that is written on the certificate. It is not the market price.
The designated day on which the members pay securities and fund to the clearing house.
A bond's face value minus its current market price.
Money (or stock) paid to investors.
where: F = face values iF = contractual interest rate C = F * iF = coupon payment (periodic interest payment) N = number of payments i = market interest rate, or required yield, ...
Original face value
The principal amount of a mortgage as of its issue date.
Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.
The upfront face value of an asset or security.
When the bid and ask price for a forward spread rate are the same.
The face value is the nominal value of the stock that is determined by the issuer of the stock. ‘Market price‘ of a stock is the price at which currently a stock is traded in the market.
The face value of a bond.
A type of preferred stock giving holders the right to "participate" in any dividends payouts for common stock over and above those normally paid to common and preferred stockholders.
I Bonds are sold a face value through financial institutions and directly from the U.S. Treasury in denominations ranging from $50 to $10,000.
How to Buy I Bonds
You can buy up to $30,000 in paper I Bonds per year.
Your trade size or face value is the amount of base currency that you are trading. For example, if you want to buy 10 000 EURUSD, you are buying 10 000 Euros.
[Harvey] above par A higher dollar amount than the face value, or par, of a security. The term is used when a security is sold for a price higher than its face value.
Related: Non-parallel shift in the yield curve Parity value Related: Conversion value Par value Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
Exception: GNMA options and T-Bill, T-Note, and T-Bond options, in which the aggregate exercise price is the strike price times the face value of the underlying contract.
face value (investment & finance)
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factoring (investment & finance)
factory orders report (investment & finance)
fail (investment & finance)
fail float (investment & finance)
fail to deliver (investment & finance) ...
Paper EE bonds are sold at a 50 percent discount to their face value (from $50 to $10,000), and are guaranteed to be worth at least face value at "original maturity", which varies from 8 years to (presently) 20 years depending on issue date.
An unsecured promissory note with a fixed maturity of one to 270 days; usually it is sold at a discount from face value.
Eurodollar Deposit. Dollar deposits in a U.S. bank branch or a foreign bank located outside the United States.
Bond: A debt instrument normally redeeming on a known future date at par, (100%), of face value. Bond issuers are normally governments, banks or corporates. They use bonds to borrow long term money, (typically between 2 years and 20 years).
Bonds may be sold at what is known at face value, or at a rate that is below the face value.
The moment a bond is issued it is worth its face value. The moment that interest rates change the bond is worth either more or less than its face value if someone wishes to buy or sell the bond.
That's because when a bond matures, the holder of the issue will receive a payment equal to its face value. If the bond is selling at a premium to its face value, then the holder will receive less than the price paid.
EE bonds differ from the I bonds in that they are purchased at half of the face value. Since these bonds will earn interest that varies based on the current economy, you will never know when the bond reaches its face value.
Par: The nominal or face values of a security. Bonds are issued at and mature at par which is usually $1000 per bond. Prior to maturity, they trade at, above or below par, depending on their coupon rate versus the current level of interest rates.
For example, an investor who holds a $1000 bond that pays 5% per year in interest is capable of selling the bond at a price that is higher than the face value as long as the interest rates are below 5%.
You get the face value at maturity, and the difference between the two is the yield. Mostly these are Treasury securities.
If a bond is trading at a discount to its face value, then the current yield is higher than the coupon rate. If a bond is trading at a premium to its face value, then the current yield is lower than the coupon rate.
If it is a $1000 bond, for example, the face value of the bond is $1000. If the fixed interest is 5% then the owner of the bond is guaranteed $50 on an annual basis. The value of the bond, however, will vary depending on supply and demand.
In such cases, trust accounting systems often default to the purchase price or face value of the investment.
The process of splitting shares that have a high face value into shares of a lower face value is known as splitting. For e.g: A share with a face value of Rs 100/- may be split into ten shares of Rs 10/- each.
They are purchased at a discount of half their face value. You cannot buy more than $5,000 (face value) during any calendar year. EE bonds increase in value as the interest accrues or accumulates and pay interest for 30 years.
And that's why you take nothing at face value in the summertime. Contrary to the assumptions being made two weeks ago after a nasty tumble for stocks, the market rallied - hard - last week, and managed to recover all of the prior week's loss.
Since you are holding these bonds for their full duration, you will be able to redeem them for face value regardless of their current market value.
Mortgage-backeds, which have a face value of $25,000 compared to $1,000 or $5,000 for other types of bonds, involve "prepayment risk.
Deep Discount Bond - a loan instrument different from an ordinary debenture which is usually offered at its face value and earns periodic interest till redemption and is redeemed with or without premium.
A term describing the greater percentage of profit or loss potential when a given amount of money controls a security with a much larger face value.
Somehow Chang was accepted at face value as an expert without much of a check on his history, which included several programs basically blowing up in 2008. And Chang actually made an appearance on Fox Business News after these charges were filed! ...
Do not take the ROE at face value
There are a number of factors, however, that can distort a company's ROE and these should be considered before you buy or sell shares based on the ratio.
A price equal to nominal or face value of a security
AT THE MARKET
A buy or sell order that must be executed at the best price currently available in the market. These are also called market orders ...
Refers to a zero-coupon US Treasury Issue that is sold at a deep Discount from the face value and pays no Coupon interest during its lifetime, but returns the Full face value at maturity.
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Rare US coins fascinate those collecting valuable American coins because the face value of the coin does not reflect their true value.
Though Face value should be just one of several factors investors should consider when buying or selling, some analysts believe that securities with low short interests are less likely to experience price declines and short squeezes.
As they are zero-coupon securities, they are issued on a discount basis - that is, they are sold originally at a price below their face value payable at maturity. The difference between the price and face value constitutes the interest payment.
If you hold a bond, you might only receive a fraction of its face value. It will depend on the amount of assets available for distribution and where your debt ranks in the priority list on the first page.
You may be below or above this range, but the majority will fall somewhere in here. At face value, paying off your mortgage will save you this percentage of interest each year on the amount that you owe on your home.
This is a drawback in implementing Modern Portfolio Theory at face value. The performance of a TPSTM portfolio is compared to a market index the investor selects. At the same time, the market benchmark index is used to measure a security's risk.
The EE bond can be bought for half the face value of the bond, and the bond matures in 12 years to yield the entire value of the bond.
Series HH Bonds ...
Discount: the difference between a bond's face value and its current market price.
Dividends: cash or stock paid to shareholders, usually on a quarterly schedule.
The last trading day of a futures contract. Date on which a bond matures, at which time the face value will be returned to the purchaser. Sometimes the maturity date is not one specified date but a range of dates during which the bond may be repaid.
At maturity, the buyer receives the full face value of the T-bill. For example, if an investor buys $10,000 worth of T-bills for $9,900, at maturity, the investor receives $10,000.
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
Parallel shift in the yield curve ...
At the end of the term of the bond, you get back the face value of your purchase. Say you put down $1,000 for a 10-year bond, and the interest rate is 6.5%. Twice a year, for a decade you'll get $32.50. At the end of the term, you've made $650.
Deep discount bond Bond selling at more than 20 percent off its face value.
Default Failing to pay principal or interest on a financial obligation. Breach of contract.
Treasury obligation futures are in terms of instruments having a stated face value (such as $100,000 or $1 million) at maturity.
Short-term securities with maturities of one year or less issued at a discount from face value. Treasury bills have tenors of 13 weeks, 26 weeks and 52 weeks which are more commonly known as 91-day, 182-day and 364-day bills, respectively.
When you invest in bonds, the bond you buy will show the amount of money being borrowed (face value), the interest rate (coupon rate or yield) that the borrower has to pay, the interest payments (coupon payments), ...
The annual rate of interest on the face value of a bond that a bond's issue promised to pay the bondholder.
A security's annual rate of interest, expressed as a percentage of the security's face value.
The number of times that interest is paid per year.
Describes a bond with a current price above face value.
Debt Security ...
You will also note that, over time, the principle value (or face value) of a currency may purposely be revised by a nation in terms of currency conversion.
Coupon Rate is the rate of interest paid on a bond, expressed as a percentage of the bond's face value.
Covered Call Writing Strategy ...
The alternative names that are commonly used are face value and principal value. For example, if the par value of a bond is $2,000, then when the bond reaches maturity its holder will receive $2,000.
See also: Market, Interest, Investor, Issue, Investment