What is meant by 'A Share At Par' and 'A Share Below Par'?

Question

What is meant by 'A Share At Par' and 'A Share Below Par'?

Answer 1

Hi Friend

Every share have face value, so suppose share ABC have face value of Rs. 10.

When the market value of share is more than Rs. 10, we call it at premium or above par value.

When share value less than Rs. 10, we call it discounted or below par value.

when share price at Rs. 10, we call it at par.

Answer 2

Sometimes stocks have a par value when they are issued.  Usually this is set at a very low price now, like one cent.  So its unlikely that you would buy it below par.  If you did you would be liable for the debts of the company, for the difference between par and what you bought it for.  This is an exception to the liability provided by a corporation.  But its not a problem anymore because par is set at such a low value now, for that purpose

Bonds also have a par value and interest payments are paid as a percentage of par.  Bond prices are referred to in terms of par, at a discount to par or a premium.

Answer 3

Par is also understood to be at a price of 100 per share in some circles. Above that is above par, and below it is below par.