What is Nominal value of Share?

Answers were Sorted based on User's Feedback

Answer / reena

Nominal value of the shares means the face value of the
shares. It is fixed by the Company at the time of issue /
subcription of shares. It is the maximum value which can be
demanded by the Company from the shareholders who subscribe
to the shares.

Is This Answer Correct ?    46 Yes 19 No

Answer / neha

Under the Companies Act 1985 shares may be issued by the
company to shareholders in return for cash or other value
equal to or greater than its nominal value. Shares in the
authorized share capital are available to be issued. The
issued share capital refers to shares which have been
allotted and issued and held by shareholders. Not all of the
authorised share capital needs to be issued. When shares are
issued the person subscribing must pay cash or equivalent
value of at least the nominal amount. Where the share is
worth more than its nominal amount, a premium may also be paid.

Is This Answer Correct ?    41 Yes 23 No

Answer / ajay

nominal value of share is also known as face value of
share. It is determined by the company before filing of
prospectus. It is recognised value of a share and which
distinguishes one kind of share to another. It is the value
for which a shareholder is liable. it can be in multiple of
Rs. 1 and can not be in fraction.

Is This Answer Correct ?    19 Yes 11 No

Answer / sinchana

the value fixed for each share is called it's original or nominal value.

Is This Answer Correct ?    1 Yes 0 No

Answer / bhimaray

The nominal value of a share is an arbitrary value allotted to that unit. When considering shares, it is usually the market value and not the nominal or book amount which investors and other stakeholders are interested in

Is This Answer Correct ?    2 Yes 2 No

Answer / prashant arjun kole

The stated value of an issued security. Nominal value in
economics also refers to a value expressed in monetary terms
for a specific year or years, without adjusting for
inflation. When used in reference to securities, nominal
value is also known face value or par value.

Is This Answer Correct ?    0 Yes 0 No

Answer / arnab

Nominal Value is the face Value.It is price of 1 share
originally issued by a company.

Is This Answer Correct ?    15 Yes 16 No

Answer / manas jose

the nominal value of share is the maximum amount at whih
the share can issued.

Is This Answer Correct ?    37 Yes 49 No

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