What is the face value?

Face value is a concept used in various sciences, including economía. Even within this area, the nominal value meets various definitions and concepts depending on the area in which it is applied. However, and in a generic way, we can define nominal value as the value assigned to a title or article. Serving to express the monetary amount involved in its acquisition. Said value must be given at a certain time and in the case of titles it will be expressed in writing in them.

Types of nominal value

As we have already indicated, the concept of nominal value refers to various definitions depending on the area in which it is applied. These are the different types of nominal values ‚Äč‚Äčthat we can find.

Face value of an item

In the case of an article, the nominal value concept refers to the monetary amount that its owner requests when he wishes to put it up for sale. This nominal value may subsequently be subject to impuestos, withholdings or other types of increases or deductions.

Face value of a security

When we talk about the nominal value of the securities, we refer to the initial value of the same. In the case of securities, the nominal value is reflected in writing on the title itself. It also matches the book valueas, for example, in the case of stamps or coins that we usually use.

Nominal value in a commercial company

The nominal value in a commercial company is calculated by dividing the capital stock by the number of shares. In this way, the nominal value of each of the shares that make up the company is obtained. When the shares of a company go to bag, the nominal value of each of them will coincide with the real valueof each action.

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