The face value, sometimes called nominal value, is the value of a coin, bond,

stamp Stamp or Stamps or Stamping may refer to: Official documents and related impressions * Postage stamp, used to indicate prepayment of fees for public mail * Ration stamp, indicating the right to rationed goods * Revenue stamp, used on documents to ...

or paper money as printed on the coin, stamp or bill itself by the issuing authority. The face value of coins, stamps, or bill is usually its legal value. However, their market value need not bear any relationship to the face value. For example, some rare coins or stamps may be traded at prices considerably above their face value. Coins may also have a salvage value due to more or less valuable metals that they contain.

Overview

The face value of bonds usually represents the principal or redemption value. Interest payments are expressed as a percentage of face value. Before maturity, the actual value of a bond may be greater or less than face value, depending on the interest rate payable and the perceived risk of

default Default may refer to: Law * Default (law), the failure to do something required by law ** Default (finance), failure to satisfy the terms of a loan obligation or failure to pay back a loan ** Default judgment, a binding judgment in favor of ei ...

. As bonds approach maturity, actual value approaches face value. In the case of

stock In finance, stock (also capital stock) consists of all the shares by which ownership of a corporation or company is divided.Longman Business English Dictionary: "stock - ''especially AmE'' one of the shares into which ownership of a company ...

certificates, face value is the par value of the stock. In the case of common stock, par value is largely symbolic. In the case of preferred stock, dividends may be expressed as a percentage of par value. The face value of a

life insurance Life insurance (or life assurance, especially in the Commonwealth of Nations) is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death ...

policy is the death benefit. In the case of so-called "

double indemnity ''Double Indemnity'' is a 1944 American crime film noir directed by Billy Wilder, co-written by Wilder and Raymond Chandler, and produced by Buddy DeSylva and Joseph Sistrom. The screenplay was based on James M. Cain's 1943 novel of the same ...

" life insurance policies, the

beneficiary A beneficiary (also, in trust law, '' cestui que use'') in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person ...

receives double the face value in case of accidental death. The face value of property, casualty or

health insurance Health insurance or medical insurance (also known as medical aid in South Africa) is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance, risk is shared among ma ...

policies is the maximum amount payable, as stated on the policy's face or declarations page. Face value can be used to refer to the apparent value of something other than a financial instrument, such as a concept or plan. In this context, "face value" refers to the apparent merits of the idea, before the concept or plan has been tested. Face value also refers to the price printed on a ticket to a sporting event, concert, or other event (the price the ticket was originally sold for by the organization hosting the event). The practice of re-selling tickets for more than face value (or a certain amount above face value) is commonly known as ticket scalping. ''Taking someone at face value'' is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy.

References

* * * {{Authority control Numismatic terminology Philatelic terminology

Overview

See also

References