What it is:
How it works/Example:
Let's assume Company XYZ corporate have $1,000 face values, but often have $5,000 par values and federal often have $10,000 par values.
The par values for are typically $0.01 per share and are set forth in the issuer's articles of incorporation. For preferred stock, however, par values may be higher because they are often used to calculate dividends.
Why it matters: