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Theface value, sometimes callednominal value, is thevalue of acoin,bond,stamp orpaper money as printed on the coin, stamp or bill itself[1] 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, somerare coins or stamps may be traded at prices considerably above their face value. Coins may also have asalvage value due to more or less valuablemetals that they contain.
The face value ofbonds usually represents theprincipal orredemption 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 ofdefault. As bonds approachmaturity, actual value approaches face value.
In the case ofstock certificates, face value is thepar value of the stock. In the case ofcommon stock, par value is largely symbolic and may be omitted entirely (no-par common stock). In the case ofpreferred stock, dividends may be expressed as a percentage of par value.
The face value of alife insurance policy is the death benefit. In the case of so-called "double indemnity" life insurance policies, thebeneficiary receives double the face value in case of accidental death.
The face value ofproperty,casualty orhealth insurance 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 asticket scalping.
Taking someone at face value is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy.[original research?]
