Nominal Value Definition

Nominal value is the face value of a financial instrument, such as a bond or share, as stated by the issuer.

What is Nominal Value?

It often differs from the current market value, which fluctuates based on supply, demand, and other factors.

For bonds, nominal value is typically the amount repaid to the holder at maturity.

A bond with a nominal value of $1,000 will repay that amount at maturity, regardless of its market price beforehand.

Net asset value is the total value of a fund's assets minus its liabilities, often expressed on a per-share basis.

Negative balance protection is a broker policy ensuring a client's account cannot fall below zero, even during extreme market volatility.

Net income is a company's total profit after all expenses, taxes, and costs have been deducted from revenue.