“At par” means that the security is being traded at its face value. This term is typically used when discussing debt instruments, such as bonds and preferred stocks. If a bond is trading at par, then the buyer is paying exactly what the issuer originally stated as the bond's value.Since par value doesn't fluctuate with market conditions, it can be seen as a more stable measure of worth. However, because it doesn't account for current interest rates or credit ratings, it's not always an accurate reflection of a security's true market value.When securities are issued in paper form, the par value will be printed on their face. This term comes from this practice, which was once common but has since become less popular due to advancements in technology that have made paperless transactions more prevalent.
