Face value: Difference between revisions
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[[File:Roumanie 1947 12 lei.jpg|thumb|A Romanian stamp from 1947 showing a face value of 12 Lei.]] |
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[[File:Roumanie 1947 12 lei.jpg|thumb|A Romanian stamp from 1947 showing a face value of 12 Lei.]]The '''face value''' is the value of a [[coin]], [[Postage stamp|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 [[nominal value|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 $1,200 [[USD]] during 2009 market prices ({{As of|2009|alt=as of November 14, 2009}}) and yet has a face value of only $50 USD.{{Citation needed|date=March 2015}} |
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The '''face value''' is the value of a [[coin]], [[Postage stamp|stamp]] or [[paper money]], as printed on the coin, stamp or bill itself 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 rare coins or stamps may be traded at prices considerably above their face value. |
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==Overview== |
==Overview== |
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Revision as of 01:09, 15 October 2016
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The face value is the value of a coin, stamp or paper money, as printed on the coin, stamp or bill itself 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 rare coins or stamps may be traded at prices considerably above their face value.
Overview
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.
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). In many jurisdictions, re-selling tickets for more than face value (or a certain amount above face value) constitutes ticket scalping and is illegal.
Taking someone at face value is assuming another person's suggestion, offer, or proposal is sincere, rather than a bargaining ploy.