Par: meaning, definitions and examples
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par
[ pɑr ]
golf term
In golf, 'par' refers to the number of strokes that an expert golfer is expected to take to complete a hole or a round. It serves as a standard against which a player's performance can be measured. For example, a hole that is considered a par 3 should ideally be completed in three strokes. Achieving 'par' on a hole indicates that a player has performed at the expected level, neither better nor worse. Additionally, 'par' can also refer to the average or standard quality in other fields, such as finance.
Synonyms
Examples of usage
- She made par on the 15th hole.
- He aims to finish the round at par.
- This hole is a par 4, so plan your shots accordingly.
financial term
'Par' in finance refers to the face value of a bond or stock. This is the value at which the bond or stock is issued and the amount that will be paid back to the bondholder at maturity. When a bond sells at par, it means that it is trading at its face value, which is typically $1,000 for most bonds. Understanding par is crucial for investors as it helps them evaluate the performance of their investments over time.
Synonyms
face value, maturity value, nominal value
Examples of usage
- The bond was issued at par.
- Investors were pleased to see the bond trading at par again.
- After the interest rate hike, the bond fell below par.
Etymology
The term 'par' originates from the Latin word 'par,' which means 'equal'. The use of 'par' in its current context began in the late 19th century in golf, establishing a benchmark for golfers' performance. It has since expanded into finance to describe the nominal value of securities and has been adopted in various contexts to indicate a standard measure or level of quality. The concept signifies equality in performance or value across multiple arenas, illustrating a sense of balance and fairness. The parallel usage in different disciplines reveals the term's versatility and importance in evaluations and assessments.