Nominal Value
The face value of a security as stated by the issuer, representing the principal amount for bonds or stated value per share for equity.
Full Definition
Nominal value (also called face value or par value) is the value assigned to a security by its issuer. For bonds, it represents the principal amount that will be repaid at maturity and the base for calculating coupon payments. For shares, it represents the minimum issue price or accounting value.
Nominal value is distinct from market value, which may be higher or lower depending on supply, demand, and prevailing interest rates.
Why It Matters
On Sails.to, nominal value is used to calculate bond yields, coupon payments, and minimum investment amounts. For example, a bond with €100 nominal value and a 6% coupon pays €6 per year per bond.
Understanding nominal value helps investors compare offerings and calculate their expected returns. The platform displays nominal value clearly in offering terms, alongside current pricing if trading on secondary markets.
Related Terms
Understand your investment
All Sails.to offerings include clear nominal value disclosures.
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