Nominal Value (Noun)
Meaning
The value of a security that is set by the company issuing it; unrelated to market value.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The shareholders of the company were pleased to learn that the nominal value of their stock remained unchanged despite fluctuations in market prices.
- The company's charter stated that the nominal value of each share would be fixed at twenty dollars.
- Investors often buy and sell securities with nominal values that are different from their market values.
- When a company declares bankruptcy, the nominal value of its stock becomes essentially worthless.
- In order to purchase a security with a nominal value of five hundred dollars, the buyer must often pay a significantly higher or lower market price.