What Does Face Value Mean?

By Kristi Waterworth – Updated Jan 1, 2025 at 10:57 AM EST

Key Points

Stocks' face value is their original listed value; bonds' face value is what's paid at maturity.
Face value affects bond interest (coupon rate); buying undervalued bonds can boost yields.
In the secondary market, bonds rarely sell at face value unless high resale value is expected.

Face value is a term that's important for investors to know. Though it's more commonly used for bonds, you may also hear it applied to stocks. Here's how it applies to your investments.

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Savings bond collage. — Image source: Getty Images.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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