Par Legal Meaning and Definition

Here is a simplified definition of the legal term Par.

Par (noun):

In legal terms, "Par" refers to the face value or nominal value of a financial instrument such as stocks, bonds, or bills of exchange. This is the value written on the instrument itself when it is issued. If the instrument is sold or traded at its face value, it is said to be sold 'at par.' If it is sold for more than this value, it is 'above par,' and if sold for less, it is 'below par.'