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LSDefine
Simple English definitions for legal terms
at par
Read a random definition: method claim
A quick definition of at par:
AT PAR: When a company issues a stock or bond, it has a face value or a price at which it is sold. If the stock or bond is sold at the same price as its face value, it is said to be trading at par. This means that the stock or bond is not being sold at a premium or a discount, but at its original value.
A more thorough explanation:
Definition: When a stock or bond is issued or sold at its face value, it is said to be at par.
Example 1: A company issues bonds with a face value of $1,000 each. If the bonds are sold for $1,000 each, they are said to be trading at par.
Example 2: A stock is issued with a face value of $10 per share. If the stock is sold for $10 per share, it is said to be trading at par.
These examples illustrate the definition of "at par" by showing that when a stock or bond is sold at its face value, it is considered to be at par. This means that the price of the stock or bond is neither higher nor lower than its original value.