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Business Definition for: below par
Dictionary of Finance and Investment Terms
below par
See also par value
Dictionary of Business Terms
below par

at a price below the face, or nominal, value of a security, especially a bond. Generally, the difference between the price paid and the amount received upon sale or maturity is taxed as a capital gain.

Related Terms:
par value

amount arbitrarily assigned by the corporate charter to one share of stock and printed on the stock certificate. The par value represents the legal capital per share. There can be no dividend declared that would cause the stockholders' equity to go below the par value of the outstanding shares. Par value may be a minimum cushion of equity capital existing for creditor protection. The par value is the amount per share entered in the capital stock account. It is usually significantly lower than the market price per share.

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