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What is Face Value?

Face Value is the nominal value of a security or currency as written/stated by the issuer. It may vary from market price, since for securities like stocks the price is heavily influenced by supply and demand.

In the case of bonds, interest is usually calculated as a percentage of face value. Also for bonds, the face value is generally equal to the par value (principal), usually the $1,000 paid to the holder at maturity.

What is Book Value?
What is Intrinsic Value?

Keywords: stocks, bonds, market price, face value,