Nominal Value (of a Share)

The value stated on a share certificate when issued. It is not necessarily the market value but represents the share's original value.


•   Nominal vs Market Value: A share's nominal value might be £1, but it could trade at a much higher price on the stock exchange.

Real-Life Scenario:

A company issues shares with a nominal value of £0.50 each. Over time, the shares' market value increases to £5.00 each due to the company's growth.