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What is the criteria of selecting nominal value of a share |
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Answer» Nominal value of shares refers to the minimum value as decided of the particular type of shares issued by the COMPANY below which is calculated by dividing the value of TOTAL paid-up SHARE CAPITAL of the company by the total number of the shares outstanding at the particular point of timeStep-by-step explanation:The nominal value, or book value, of a share, is usually assigned when the stock is issued. Also called the face value or par value, the nominal value of the stock is its redemption price and is normally stated on the front of that security.The nominal value of a company's stock, or par value, is an ARBITRARY value assigned for balance sheet purposes when the company is issuing share capital – and is typically $1 or less. It has little to no bearing on the stock's market price |
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