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TeachMeFinance.com - explain Par par -- the situation in which the face value of a security equals its actual selling price: sold "at par." another definition... Par -- Equal. An equality between the face value of a bill of exchange, share of stock etc., and its actual market value. If it can be sold for more, it is "above par;" if for less, it is "below par." historic definition... Par -- The face value. On the New York Stock Exchange if the face value of a stock is $100 it is at par when it is selling at 100. It is above par when it is selling at a higher price, as 101 ; it is below par when it is selling at a lower price, as 99. Half-stock (stock of the face value of $50) also is at par when it is quoted at 100, which in this case means $50. The face value of a stock Is divided into 100 parts for quotation purposes, no matter what the face value may be, and each part is called 1 per cent or 1 point (or a point). Therefore, when a half-stock is quoted at 101 it is 1 above par, which means that the stock is worth $50.50 a share-; when it is quoted at 99 it is 1 below par, which means that the stock is worth $49.50 a share. The same principle applies to quarter-stock (stock of the face value of $25) and, in brief, to stock of any face value. In some markets stocks are quoted in dollars instead of by percentage. Thus, in such markets if a stock of the face value of $100 is selling at 100 it is at par; if selling at 101 it is 1 above par; if selling at 99 it is 1 below par. Likewise, if a stock of the face value of $50 is selling at 50 it is at par ; if selling at 51 it is 1 above par; if selling at 49 it is 1 below par. So, also, if a stock of the face value of $25 is selling at 25 it is at par; if selling at 26 it is I above par; if selling at 24 it is 1 below par; and so on. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.