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The par value on a preferred stock entitles the holder to none of these options are true. an established amount of money if the company is liquidated. priority on all cumulative dividends. a minimum amount of convertible common stock.

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The par value on a preferred stock entitles the holder to "an established amount of money if the company is liquidated".
Other terms that are used for Par value are nominal value or face value. par value is considered as important for a bond because of its ability to determine the maturity value of bond and also the dollar value of payments of coupon.For a bond, typically the par value is $1,000 or $100.

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