Face value

2025-10-31T00:46:49Z

2A02:2455:8423:4800:D3E6:5C4B:F95:F7A3: /* Overview */

{{Other uses}}
{{short description|Nominal value of a currency given by the issuing authority}}
{{more footnotes|date=September 2017}}
[[File:Roumanie 1947 12 lei.jpg|thumb|A [[Postage stamps and postal history of Romania|Romanian stamp]] from 1947 showing a face value of 12 Lei]]
The '''face value''', sometimes called '''nominal value''', is the [[value (economics)|value]] of a [[coin]], [[Bond (finance)|bond]], [[Postage stamp|stamp]] or [[paper money]] as printed on the coin, stamp or bill itself<ref>{{Cite book|title=A dictionary of business and management.|date=2009|publisher=Oxford University Press|isbn=9780199234899|edition=5th|location=Oxford [England]|oclc=277068142}}</ref> 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, some [[scarcity|rare]] coins or stamps may be traded at prices considerably above their face value. Coins may also have a [[salvage value]] due to more or less valuable [[metal]]s that they contain.

==Overview==
The face value of [[Bond (finance)|bonds]] usually represents the [[Debt|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 (finance)|default]]. As bonds approach [[Maturity (finance)|maturity]], actual value approaches face value.

In the case of [[Share capital|stock]] certificates, face value is the [[par value]] of the stock. In the case of [[common stock]], par value is largely symbolic and may be omitted entirely (no-par common stock). 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 (insurance)|double indemnity]]" life insurance policies, the [[beneficiary]] receives double the face value in case of accidental death.

The face value of [[Property insurance|property]], [[Casualty insurance|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.

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 as [[ticket scalping]].

''Taking someone at face value'' is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy.{{Original research inline|date=September 2017}}

==See also==
{{Portal|Numismatics|Money}}
* [[Denomination (currency)]]
* [[Denomination (postage stamp)]]
* [[Gresham's law]]
* [[Nominal value]]
* [[Par value]]
* [[Place value]]
* [[Token money]]

==References==
{{Reflist}}

==Further reading==
* {{cite book | last=Buchanan | first=T.B. | title=Principles of Money and Coinage | publisher=Chamber of Commerce and Board of Trade | year=1894 | url=https://archive.org/details/principlesofmone00buch | access-date=September 5, 2017 | page=[https://archive.org/details/principlesofmone00buch/page/22 22]}}
* {{cite book | last=Allen | first=L. | title=The Encyclopedia of Money | publisher=ABC-CLIO | year=2009 | isbn=978-1-59884-251-7 | url=https://books.google.com/books?id=X4kgDkYxGrcC&pg=PA193 | access-date=September 5, 2017 | page=193}}
* {{cite book | last=Conant | first=C.A. | title=Book II-The principles of the value of money: The importance of definitions | publisher=Harper | series=The Principles of Money and Banking | year=1905 | url=https://books.google.com/books?id=8Ow1AQAAMAAJ&pg=PA280 | access-date=September 5, 2017 | page=280}}

{{Authority control}}

[[Category:Numismatic terminology]]
[[Category:Philatelic terminology]]

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Face value