Definition

Noun: - The stated or face value of something, such as a security, coin, or currency, as assigned by its issuer. This value is often printed on the item itself and is distinct from its actual market value or real purchasing power.

Usage

The term "nominal value" is used primarily in finance and economics to refer to an officially stated value that may differ from an item's true economic worth. - It is often contrasted with "real value" or "market value." - It is a fixed, official figure used for accounting, legal, or denominational purposes.

Examples

• The nominal value of the bond is $1,000, but due to rising interest rates, it now trades on the market for only $950.
• Coins are often minted with a nominal value much lower than the value of the metal they contain.
• For accounting purposes, the shares were entered at their nominal value of one cent each.

Advanced Usage

• In Economics: "Nominal value" can refer to a price or value that is not adjusted for inflation. For example, a "nominal GDP" figure reflects current prices without accounting for changes in the price level over time.
• In Law/Contracts: The term can denote a very small or token amount, as in "nominal damages," which are awarded to recognize a legal wrong where no substantial financial loss occurred.

Variants and Related Words

• Face Value: A near-synonym often used interchangeably with "nominal value," especially for bonds and currency.
• Par Value: Another synonym, specifically for the nominal value of a security as stated in its charter.
• Nominal (Adjective): Existing in name only; very small in comparison to the real value or cost. (e.g., a fee).

Synonyms

• Stated value
• Face value
• Par value
• Denominated value

Antonyms

• Market value
• Real value
• Intrinsic value

Noun

1. the value of a security that is set by the company issuing it; unrelated to market value