The nominal value of a share is same as its

Assessment: WAEC SSCE - Commerce - 2005 (Objective) Subject: Commerce

Question 1 Report

The nominal value of a share is same as its

Answer Details
The nominal value of a share is the same as its face value. The face value is the value of the share that is printed on the share certificate. It is also known as the par value or the nominal value of the share. This value is fixed and does not change, regardless of any fluctuations in the market. The market value, on the other hand, is the current price at which the share is trading in the market. It can be higher or lower than the face value, depending on various factors such as demand, supply, economic conditions, and company performance. If the market value of a share is higher than the face value, it is said to be trading above par value. Conversely, if the market value is lower than the face value, it is trading below par value. Therefore, it's important to understand that the nominal value or face value of a share does not necessarily indicate its current market value, which can fluctuate depending on several factors.

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