Par value, also known as face value, is the nominal value of a bond or stock as stated on the certificate. For bonds, it represents the amount the issuer agrees to pay the bondholder at maturity. For stocks, it is the minimum price at which shares can be issued, often set at a very low amount, like $0.01. Par value is important for investors as it helps determine the value of their investments. While it does not reflect the market value, which can fluctuate based on supply and demand, it serves as a baseline for assessing the worth of financial instruments like bonds and stocks.