Question

Nominal value is also called as
A) Book Value
B) Stock Value
C) Par Value
D) Market Value

Answer 1

Hint:
In Basic terms, definition of VALUE in subjective way is,
A number, or the result of calculation.
Example: \[3 \times 4\] gives the Value of 12. There have been different values in question which are used in many ways in a variety of subjects.

Complete step by step solution:
Nominal value is the mentioned or stated value of issued security. It also refers to face value or par value in reference to securities.
So, the correct answer is option C. Par value.

Additional information:
Book Value: An asset’s book value is equal to its carrying value on the balance sheet, and companies calculate it netting the asset against its accumulated depreciation.
Stock Value: A stock value is stock that trades at a lower price relative to its fundamentals, such as dividends, earnings, or sales, making it appearing to value investors.
Par Value: Par value is the face value of a bond. Par value is important for a bond or fixed-income instruments because it determines its maturity value as well as the dollar value of coupon payments.
Market Value: Market value is also known as OMV or “open market valuation” is the price an asset would fetch in the marketplace, or the value that the investment community gives to a particular equity or business.

Note:
Nominal value has been considered as Opposite to the market value.it is also known as redemption or unadjusted price in terms of securities.
Formula for finding Nominal value of security:
Share nominal value formula: $\dfrac{\text{paid up share capital}}{\text{Number of outstanding shares}}$