Denomination

(lat. nominalis - nominal) - 1) the initial value of the price, the officially declared nominal value indicated on securities, banknotes, paper money, coins. N. is also called. nominal or face value (price). In relation to an ordinary share, N. means the amount established by the company's charter. The nominal value may be used to calculate the value of shares in monetary units in the financial statement. The par value has little to do with the market value of ordinary shares. Many companies issue shares without a face value, but list the value of one share on the balance sheet. With regard to preferred shares, N. means the face value on which the dividend is charged; 2) currency parity: the officially fixed exchange rate against gold (gold parity) or in the reserve currency; with the introduction of floating exchange rates, such parities were abolished.