Par Value
A small, nominal dollar value assigned to each share at incorporation — often just $0.0001 — with little relation to what the stock is actually worth.
Quick Answer
Does par value have anything to do with what my shares are actually worth?
Essentially no — par value is a legal formality set at incorporation, often a fraction of a cent, while actual share value is determined separately through funding rounds and independent 409A valuations.
- Par value and fair market value are unrelated numbers
- It's typically set once, at incorporation, and rarely revisited
- Confirm which figure a document references before comparing prices
The Lovie Advantage
Lovie keeps par value and fair market value clearly labeled and separate, so the two numbers are never mistaken for each other.
See how this connects to Warrant. For the formal definition, see the USPTO's overview of trademark basics.
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