Definition of Nominal Value

The nominal value is the one on which a security or security is issued, and whose amount is written on it.

As an informative value, the nominal is an amount consigned in a security or share in representation of the amount that a particular entity acknowledges having received in exchange for it. The nominal value may or may not coincide with the effective value or the issue price, but it is included as an invariable quantity in a security and is considered a virtual or reference price that is assigned by the owner or the natural or legal person that has issued. For the economy, it is a nominal value that appears on the certificate of a certain value of rent fixed, as can be a bond or one mortgage and that represents the amount owed at the time of maturity.
In contrast, therefore, the real value is that which recognizes the effect of the inflation on the title or action and establishes a new cost for it.

The nominal value can be variable depending on what is being valued, but for example, in a movable security it is the one to which it was originally issued. In other cases, such as

assessment of an economy in general, a devaluation is the depreciation of the nominal value of the currency of a country compared to those of other foreign countries. The opposite would be the exchange rate revaluation of said national currency. Although the currency in question has a reference value, it is affected by the ups and downs of the economy and, thus, is positively or negatively altered.

Other values ​​considered by the economy as the nominal are the net current, the current, the capitalized, compound, accounting, market, first-class, fixed-income, net or heritage net, residual or recovery and others.

Issues in Nominal Value