above par value

简明释义

高于票面价值

英英释义

Above par value refers to a situation where the market price of a financial instrument, such as a bond or stock, is greater than its nominal or face value.

高于面值是指金融工具(如债券或股票)的市场价格超过其名义或面值的情况。

例句

1.When bonds are issued above par value, it usually means that the interest rates are lower than the market rate.

当债券以面值之上的价格发行时,通常意味着利率低于市场利率。

2.Investors prefer to buy shares that are valued above par value as it reflects the company's growth potential.

投资者更喜欢购买那些价值在面值之上的股票,因为这反映了公司的增长潜力。

3.The company's stock is trading at a price above par value, indicating strong investor confidence.

公司的股票交易价格在面值之上,这表明投资者信心强烈。

4.A share price above par value often signifies that the company is performing well.

股票价格在面值之上通常意味着公司表现良好。

5.The new issue of preferred stock was sold above par value due to high demand.

由于需求旺盛,新发行的优先股以面值之上的价格出售。

作文

In the world of finance and investment, understanding various terms is crucial for making informed decisions. One such term is above par value, which refers to a situation where a financial instrument, such as a bond or stock, is traded at a price higher than its nominal or face value. This concept is fundamental for investors looking to gauge the performance of their investments and make strategic choices. When a bond is issued, it typically has a face value, often set at $1,000. If the market price of that bond rises to $1,100, it is said to be trading at a price above par value. This can happen for several reasons, including a decrease in interest rates, which makes existing bonds with higher rates more attractive, or improved creditworthiness of the issuer. Investors are often willing to pay a premium for bonds that offer better returns compared to newly issued bonds at lower rates.Similarly, stocks can also trade above par value. In this case, the par value of a stock is a nominal value assigned to shares when they are issued, often set at a very low amount, like $0.01. However, the market value of a stock can rise significantly due to factors such as strong company performance, positive investor sentiment, or favorable market conditions. When a stock trades at a price significantly higher than its par value, it reflects the market's perception of the company's future growth potential and profitability.Investing in securities that trade above par value can have both advantages and disadvantages. On one hand, purchasing bonds or stocks at a premium might indicate that the asset is in high demand, suggesting a robust market position. On the other hand, paying more than the par value means that an investor is taking on additional risk. If the market conditions change, the value of the security could decline, leading to potential losses.For instance, consider a scenario where an investor buys a bond priced above par value at $1,050. If interest rates rise shortly after the purchase, the value of that bond may drop below $1,000, resulting in a loss if the investor decides to sell before maturity. Therefore, while trading above par value might seem appealing, it requires careful consideration of market trends and economic indicators.In conclusion, the term above par value plays a significant role in the financial landscape. It helps investors understand the pricing dynamics of bonds and stocks while highlighting the importance of assessing risk versus reward. Whether one is a seasoned investor or a novice, grasping the implications of trading above par value is essential for making sound investment decisions. By keeping an eye on market conditions and understanding the factors that influence pricing, investors can navigate the complexities of financial markets more effectively and enhance their investment strategies.

在金融和投资的世界中,理解各种术语对于做出明智的决策至关重要。其中一个术语是高于面值,它指的是一种金融工具(例如债券或股票)以高于其名义或面值的价格交易的情况。这个概念对于希望评估投资表现并做出战略选择的投资者来说是基础。当债券发行时,它通常具有面值,通常设定为1000美元。如果该债券的市场价格上升到1100美元,则称其以高于面值的价格交易。这可能发生的原因有几个,包括利率下降,使得现有利率较高的债券更具吸引力,或者发行人的信用状况改善。投资者通常愿意为提供更高回报的债券支付溢价,而这些债券相较于新发行的低利率债券更具吸引力。类似地,股票也可以以高于面值的价格交易。在这种情况下,股票的面值是分配给股份的名义价值,通常设定为非常低的金额,如0.01美元。然而,由于公司业绩强劲、投资者情绪积极或市场条件有利,股票的市场价值可能会大幅上升。当一只股票的交易价格远高于其面值时,反映了市场对公司未来增长潜力和盈利能力的看法。投资于以溢价交易的证券可能具有优缺点。一方面,以溢价购买债券或股票可能表明该资产需求旺盛,暗示市场地位稳固。另一方面,支付高于面值的价格意味着投资者承受着额外风险。如果市场条件发生变化,证券的价值可能会下降,从而导致潜在损失。例如,考虑一个场景,投资者以1050美元的价格购买一只以高于面值交易的债券。如果在购买后不久利率上升,则该债券的价值可能会跌破1000美元,导致投资者在到期前决定出售时遭受损失。因此,尽管以高于面值的价格交易可能看起来很有吸引力,但它需要仔细考虑市场趋势和经济指标。总之,术语高于面值在金融领域中扮演着重要角色。它帮助投资者理解债券和股票的定价动态,同时突显评估风险与回报的重要性。无论是经验丰富的投资者还是新手,掌握以高于面值交易的含义对于做出明智的投资决策至关重要。通过关注市场条件,了解影响定价的因素,投资者可以更有效地驾驭金融市场的复杂性,并增强他们的投资策略。

相关单词

par

par详解:怎么读、什么意思、用法