par value

Examples of par value in the following topics:

• Equity Finance

  • Stock is different from the property and the assets of a business which may fluctuate in quantity and value.
  • Given the total amount of money invested in the business, a share has a certain declared face value, commonly known as the par value of a share.
  • The par value is the minimum amount of money that a business may issue and sell shares for in many jurisdictions, and it is the value represented as capital in the accounting of the business.
  • A business may declare different types or classes of shares, each having distinct ownership rules, privileges, or share values.
  • A stock certificate is a legal document that specifies the amount of shares owned by the shareholder, and other specifics of the shares, such as the par value, if any, or the class of the shares.

• The Exchange of Value

  • Value can also be expressed as $Value = Benefits - Costs$
  • Value is thus subjective (i.e., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values).
  • For an organization to deliver value, it has to improve its value to cost ratio.
  • When an organization delivers high value at high price, the perceived value may be low.
  • When it delivers high value at low price, the perceived value may be high.

• Obtaining Credit

  • A credit default swap represents the price at which two parties exchange this risk – the protection "seller" takes the risk of default of the credit in return for a payment, commonly denoted in basis points (one basis point is 1/100 of a percent) of the notional amount to be referenced, while the protection "buyer" pays this premium and in the case of default of the underlying (a loan, bond or other receivable), delivers this receivable to the protection seller and receives from the seller the par amount (that is, is made whole)

• Functions of Money

  • The main functions of money are as a medium of exchange, a unit of account, and a store of value.
  • Gold was popular as a medium of exchange and store of value because it was inert.
  • It must be divisible into smaller units without a loss of value.
  • The value of the money must also remain stable over time.
  • Some have argued that inflation, by reducing the value of money, diminishes its ability to function as a store of value.

• A Brief Definition

  • Promotion – how the producer communicates the value of its products – is one of the market mix elements.
  • Promotion – how the producer communicates the value of its products – is one of the market mix elements.

• Profit and Value

  • Profit is equal to a firm's revenue minus its expenses, while value is the present value of the firm's current and future profits.
  • A) The value of a firm is the sum of its expected profits; B) The value of a firm is the sum of the PV of its current and future profits; or C) The value of a firm is its current profit.
  • In terms of a business, value is the present value of the firm's current and future profits.
  • The value of a firm is linked to profit maximization.
  • Profit is equal to a firm's revenue minus its expenses, while value is the present value of the firm's current and future profits.

• Performance per Share

  • The below ratios describe the value of shares of stock to stockholders, both in terms of dividends and their general ownership value:
  • The P/E ratio is a widely used metric used for measuring the relative value of companies.
  • Market To Book ratio is used to compare a company's current market price to its book value.
  • In the first method, the company's market capitalization can be divided by the company's total book value from its balance sheet (Market Capitalization / Total Book Value).
  • The second method, using per-share values, is to divide the company's current share price by the book value per share, which is its book value divided by the number of outstanding shares (Share Price / Book Value Per Share).

• The marketing model

  • The marketing model is an approach whereby companies create value for their customers.
  • This concept can be understood by applying it in the so called Value Chain Model introduced by Michael Porter.
  • A simple way to understand the creation of value to customers is by examining the following equation:
  • Value is created by increasing benefits to the customers.
  • Now you must understand how value is created for your customers.

• The wasteful practices inherent in businesses

  • ') This means that up to 95% of the activities in most businesses add no customer value at all.
  • Activities classified as ‘non-value' can be split into two categories.
  • The first, necessary, but non-value adding activities, constitutes as much as 35% of most organizational work and is comprised of actions that do not directly contribute to what customers want in a product (e.g. payroll, behind-the-scenes cleaning, the fulfilment of government regulations, and so on).
  • The second category, non-value adding activities, can comprise up to 60% of work activities, yet these activities add no value to customers in any way, shape or form (e.g. production line snags, waiting periods, unnecessary paperwork, end-of-line quality inspections, etc.).

• Values, aesthetics, and time

  • An individual's values arise from his/her moral or religious beliefs and are learned through experiences.
  • For example, in America we place a very high value on material well-being, and are much more likely to purchase status symbols than people in India.
  • Americans spend large amounts of money on soap, deodorant, and mouthwash because of the value placed on personal cleanliness.