Nominal Value

Nominal Value - Nominal Value is the apparent worth or the known nominal value shown on the principal, the face, and the side, of a bill of exchange, currency, security, stock, share, bond, or the other type of financial instruments. The par value of a loan stock, bond, preferred stock, preference share, is the value at which it will redeem. Some jurisdictions allow the shares to issue with no par value factor. Par value is classically different from the market price. If the market price is higher than the par value, the difference is the premium. The lower the difference is the discount.