Nominal par definitions
| Word backwards | lanimon rap |
|---|---|
| Part of speech | Adjective |
| Syllabic division | nom-in-al par |
| Plural | The plural of nominal par is nominal pars. |
| Total letters | 10 |
| Vogais (3) | o,i,a |
| Consonants (5) | n,m,l,p,r |
Nominal par value, also known as face value, is the value of a security stated by the issuer. It is the price at which the security is issued at the time of the initial public offering (IPO).
Nominal par value is often different from the market value of a security. Market value is determined by supply and demand in the market, while nominal par value is a fixed amount determined by the issuer.
Importance of Nominal Par Value
Nominal par value is important as it helps determine the legal capital of a company. Legal capital is the amount that must be retained in the business for the protection of creditors in case of bankruptcy.
Use in Accounting
In accounting, nominal par value is used to calculate the accounting value of shares. It is also used to determine the dividend payment on shares.
Legal Implications
The nominal par value of a security is important for legal purposes, such as determining voting rights and entitlement to assets in case of liquidation.
Overall, nominal par value plays a crucial role in the financial and legal aspects of securities issuance and accounting.
Nominal par Examples
- The price of the item was listed as nominal, but it ended up being much higher.
- We paid a nominal fee to enter the museum.
- He held the honorary title of nominal leader, but had no real power.
- The contract required a nominal down payment to secure the deal.
- She received a nominal raise, which was disappointing considering her hard work.
- The company claimed to have a nominal impact on the environment.
- The president served as a nominal figurehead while the vice president made all the decisions.
- The restaurant offered a dish at a nominal price to attract customers.
- The nominal amount of sugar in the drink is misleading, as it is actually quite high.
- The politician was accused of being a nominal supporter of the cause, but not taking any real action.