Glossary

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Par value

The par value, or nominal value, of a security is the fixed amount stated on its face. Since May 2001 the par value of a share has had to be at least CHF 0.01. The par value of a share indicates which proportion of the company's share capital an investor participates in through the purchase of its stock.

The par value bears no relationship to a share's market value or issue price. In the case of bonds the par value is a share of the overall indebtedness of the issuer. It is the amount that the issuer of the bond must repay to the holder of the security upon its expiry.

In the case of legal tender, the par value is the payment value. The par value is usually printed on the face of the coin or note, e.g. a five franc coin or a hundred franc note.
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