(1) For bonds, the amount that the issuer agrees to pay at the maturity date. Also called the maturity value or face value of a bond.
(2) For common stocks, an arbitrary dollar amount assigned to each share by the company's charter.
Par value has little or no impact on the actual market value of a security. However, it is important in the case of preferred stocks and bonds, since the preferred dividend and interest are often based on the par value assigned to each issue. For example, an 8% bond is a promise to pay that percentage of the bond's par (100% of face value) value annually.