The nominal value of a share as specified in the Memorandum of Association and the...
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The nominal value of a share as specified in the Memorandum of Association and the share certificate is the
- A) discounted value
- B) stock value
- C) face value
- D) par value
Correct Answer: C) face value
Explanation
The question is asking about the meaning of the nominal value of a share.The nominal value of a share refers to the face value of the share, which is the value stated on the share certificate and in the company's Memorandum of Association. It is the original value assigned to the share when it was first issued by the company.
In this question, the correct answer is Option C: face value. The face value represents the initial value of the share and is used for accounting and legal purposes. It is different from the market value of the share, which can fluctuate based on supply and demand in the stock market.
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