FACEVALUE Meaning and
Definition
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Face value refers to the nominal or stated value of a legal tender currency, a financial instrument, a stock, a bond, or any other negotiable instrument. It represents the value printed or engraved on the front side (face) of the document, typically in the currency of the issuing country. Face value serves as the initial or original worth assigned to the instrument when it is first issued.
The term is commonly used in relation to currency, where the face value indicates the monetary worth of a particular denomination, such as the one, five, ten, fifty, or hundred-dollar bill. It acts as a legal tender and represents the purchasing power of the currency in circulation. However, face value does not account for any potential fluctuations in value due to inflation, currency devaluation, or other economic factors.
In the context of stocks and bonds, face value refers to the initial value at which they are issued. It represents the principal amount loaned or invested, without considering any market appreciation or depreciation. For example, a bond with a face value of $1,000 implies that the issuer is obligated to repay the bondholder $1,000 at maturity, regardless of the bond's current market price.
While face value is the nominal value of an instrument, its market value may differ significantly based on supply and demand dynamics, economic conditions, and investor sentiment.
Common Misspellings for FACEVALUE
- dacevalue
- cacevalue
- vacevalue
- gacevalue
- tacevalue
- racevalue
- fzcevalue
- fscevalue
- fwcevalue
- fqcevalue
- faxevalue
- favevalue
- fafevalue
- fadevalue
- facwvalue
- facsvalue
- facdvalue
- facrvalue
- fac4value
- fac3value
Etymology of FACEVALUE
The word "facevalue" is a compound word made up of two individual words: "face" and "value".
The word "face" comes from the Old French word "faz", which means "appearance" or "surface". It can be traced back to the Latin word "facies", meaning "form" or "appearance". Over time, "face" adopted the meaning of the front part of a person's head, including the features that make up their appearance.
The word "value" comes from the Old French word "value", which in turn derives from the Latin word "valere", meaning "to be worth" or "to have power". This Latin root also gave rise to words like "valuable" and "evaluate".
