What is nominal value?

The nominal value is the value that is assigned to a good or service without taking into account inflation or market conditions.

For example, the nominal value of a share is the one that is fixed at the time of its issuance and arises from dividing the share capital by the number of shares.

However, the nominal value may not reflect the true value of things, as it may be affected by currency fluctuations, inflation, or supply and demand. Therefore, it is necessary to also know the real value.

Related concepts

• Social capital
• Shares
• Stakes
• Pre- and post-money stake
• Residual price