1. The stated value of a security, such as a bond or share of preferred stock, from which interest payments or dividends are calculated as a percentage. Also called face value.
2. The minimum price at which a share of common stock is initially issued to investors.
The American Heritage® Dictionary of the English Language, Fifth Edition copyright ©2018 by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
The American Heritage Dictionary Blog
Check out our blog, updated regularly, for new words and revised definitions, interesting images from the 5th edition, discussions of usage, and more.