Face value


Face value

Face value is the value of a coin, stamp or paper money, as printed on the coin, stamp or bill itself by the minting authority. While the face value usually refers to the true value of the coin, stamp or bill in question (as with circulation coins) it can sometimes be largely symbolic, as is often the case with bullion coins. For example, a one troy ounce (31 g) American Gold Eagle bullion coin was worth and sold for about $670 USD during 2006 market prices (as of July 17, 2006) and yet has a face value of only $50 USD.

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. As bonds approach maturity, actual value approaches face value.

In the case of stock 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 policy is the death benefit. In the case of so-called "double indemnity" life insurance policies, the beneficiary receives double the face value in case of accidental death.

The face value of property, casualty or health 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.

"Taking someone at face value" is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy.

ee also

* Melt value
* Par value (finance)


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Look at other dictionaries:

  • Face Value — Studioalbum von Phil Collins Veröffentlichung 9. Februar 1981 Label Virgin Records, Atlantic Records …   Deutsch Wikipedia

  • face value — n: the value indicated on the face of something (as a stock certificate) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. face value I …   Law dictionary

  • face value — Face Face (f[=a]s), n. [F., from L. facies form, shape, face, perh. from facere to make (see {Fact}); or perh. orig. meaning appearance, and from a root meaning to shine, and akin to E. fancy. Cf. {Facetious}.] 1. The exterior form or appearance… …   The Collaborative International Dictionary of English

  • face value — Face Face (f[=a]s), n. [F., from L. facies form, shape, face, perh. from facere to make (see {Fact}); or perh. orig. meaning appearance, and from a root meaning to shine, and akin to E. fancy. Cf. {Facetious}.] 1. The exterior form or appearance… …   The Collaborative International Dictionary of English

  • Face Value — Face Value …   Википедия

  • face value — noun count or uncount the value of a stamp or coin that is shown on the front of it take someone/something at face value or accept someone/something at face value to accept someone or something without considering whether they really are what… …   Usage of the words and phrases in modern English

  • face value — n 1.) take sth at face value to accept a situation or accept what someone says, without thinking there may be a hidden meaning ▪ You shouldn t always take his remarks at face value. 2.) [singular, U] the value or cost shown on the front of… …   Dictionary of contemporary English

  • Face Value — Saltar a navegación, búsqueda Face Value es el primer disco de Phil Collins como solista. Fue grabado en 1981, y en él se pueden encontrar éxitos como In The Air Tonight y I Missed Again. Pistas Todos los temas compuestos por Phil Collins excepto …   Wikipedia Español

  • face value — n. 1. the value printed or stamped on a bill, bond, coin, etc. 2. the amount of the death benefits of a life insurance policy 3. the seeming value [to take a promise at face value] …   English World dictionary

  • face value — If you take something at face value, you accept the appearance rather than looking deeper into the matter …   The small dictionary of idiomes


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