The value stated on the share certificate as opposed to the current value is called?
Answer Details
The value stated on the share certificate is called the nominal value. It is the face value of the share as determined by the company when it issues the shares. It is also known as the par value or face value.
The current value of the share is determined by the market and is called the market value. The market value of a share may be higher or lower than the nominal value depending on various factors such as the company's performance, supply and demand, and prevailing market conditions.
For example, a company may issue shares with a nominal value of $10 each, but the market value of the shares may be $15 or $20 each due to the company's strong performance and investor demand. On the other hand, the market value of the shares may be lower than the nominal value if the company is not performing well or there is little demand for the shares in the market.