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. In some instances, the face value is largely symbolic.
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. Face value is also referred to as par value or principal.
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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. Feasible set of portfoliosThe collection of all feasible portfolios.
Face value: see above;
Inflation accrued: the effective adjustment factor applied to the TIB's Face value to reflect movements in the CPI;
Accrued interest: the amount of interest earned but not yet paid.
face value Par value.
fallen angel A bond that was investment grade when issued, but has since degraded to junk quality.
Fama, Eugene Scholar who extended the random walk hypothesis as the efficient market hypothesis.
Face value of a reverse convertible, on which interest is paid
Reverse convertibles have a nominal value, on which investors are paid an interest for each day they are holding the security. The interest paid does not depend on the current price of the reverse convertible.
face value Another term for par value.
facilitate To provide services and/or capital to customers in order to expedite the trading process. For example, Need I remind you gentlemen that our job is to facilitate trades for our customers, not gamble on earnings reports?
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. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
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. Thus, a bond with a 5% coupon pays $50 a year in interest, usually in semi-annual installments.
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). Also known as "par value" or simply "par".
Face Value The amount a bond issuer is required to repay investors on the bond's maturity date. Federal Deposit Insurance Corporation (FDIC) A federal agency that insures money on deposit in member banks and thrift institutions.
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.
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 is not an indication of market value.
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.
Federal Funds - Member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks.
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.
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. Corporate bonds normally have a par value of $1,000, but this amount can be much greater for government bonds.
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.
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.
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, or observed / appropriate yield to maturity (see below) M = value at maturity, ...
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.
While the other tranches are outstanding, the Z-tranche receives credit for periodic interest payments that increase its face value but are not paid out. When the other tranches are retired, the Z-tranche begins to receive cash payments that include both principal and continuing interest.
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.
Coins which are worth as metal seriously less than their face value are called token coins. They are tokens of a value, a purchasing power, which they do not intrinsically possess.
face value (investment & finance)
factor (investment & finance)
factoring (investment & finance)
factory orders report (investment & finance)
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fail float (investment & finance)
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In this manner, the bank extends credit to the importer, who agrees to pay the bank the face value of all drafts prior to their maturity. The importer draws a time draft, listing itself as the payee. The bank accepts the draft and discounts it-paying the importer the discounted value of the draft.
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.
Federal Agency Short-Term Securities.
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).
They've traditionally been sold at face value. So you can buy a $100 I bond and redeem it for $100, plus interest that compounds semiannually.
EE bonds are now structured differently. Before, paper EE savings bonds were sold at half their face value and redeemed at face value at maturity. As of Jan.
government bonds whose face value rises alongside inflation. Despite tame inflation over the past five years, the TIP's average annual total return has been 3.97%. Over the past 10 years, the average annual return has been 4.23%.
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.
The nominal or face value of a security. A bond selling at par is worth the same dollar amount as it was issued for, or at which it will be redeemed at maturity, usually $1000. For common stock, the company issuing the stock sets par value.
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%.
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.
Do not take them at face value because they can whipsaw quite a bit. They should be used to alert you to possible trading opportunities not used as a mechanical trading model. Always check the chart to verify the price pattern and the configuration of the PMO.
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.
Short-term obligations issued at a discount from face value, with maturities ranging from one to 360 days. Discount notes have no periodic interest payments; the investor receives the note's face value at maturity.
In such cases, trust accounting systems often default to the purchase price or face value of the investment. As products return principal and income, the purchase price may greatly overstate to the value, if the trust accounting system does not accept paydowns.
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.
You get the face value at maturity, and the difference between the two is the yield. Mostly these are Treasury securities. Zeros, as they are known, have some advantages: you can buy one today that matures when your child is ready for college and know exactly how much money you will have.
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.and then some.
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." Because their value drops when the rate of mortgage prepayments rises, they don't benefit from declining interest rates like most other bonds do.
Short-term bonds may be held by banks to satisfy their liquidity requirements The "face value" of the bond is termed its "nominal value" and represents the amount accruing to the holder of the security on the maturity date. Bonds are available in any denomination.
Par value for bonds is simply the face value. Par value for stocks is an outdated concept, and although some common stock has a par value, nowadays many issues don't even bother.
Investing terms and definitions starting with
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The annual rate of interest on the face value of a bond that a bond's issue promised to pay the bondholder.
Payment of a dividend or capital gain. Shareholders may take their distributions in cash or reinvest them in additional shares of the same fund or another fund.
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.
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! ...
If you decide that you want to "buy" yourself income when you retire, the various strategies a planner can help you weigh to receive income may include buying discounted bonds that mature at full face value at a later date (e.g.
Rare US coins fascinate those collecting valuable American coins because the face value of the coin does not reflect their true value. Half-cent coins can fetch more that dollars at auction, and it can be very useful if you are able to spot the genuine rarity from the forgery.
by David D Garner ...
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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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.
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.
Madrid Inter-bank Offered Rate.
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. However, this is not necessarily the case.
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.
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. The difference - $100 in this case - is the yield earned by the investment.
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.
Treasury obligation futures are in terms of instruments having a stated face value (such as $100,000 or $1 million) at maturity. Futures contracts that call for cash settlement rather than delivery are based on a given index number times a specified dollar multiple.
In addition, the neutral weighting mechanism in fixed income is value weighting, whereby the bonds with the highest outstanding face value receive the highest weighting in an index. This means the biggest debtors are given the highest weightings.
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. This is referred to as devaluation, which will be discussed in greater detail in the following chapter.