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The nominal value of a share is same as its

Commerce
WAEC 2005

The nominal value of a share is same as its

  • A. market value
  • B. below par value
  • C. above par value
  • D. face value
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Correct Answer: Option D
Explanation

The nominal value, or book value, of a share is usually assigned when the stock is issued. Market value reflects what the market is willing to pay for it. These two values may differ tremendously as a result of different market conditions as well as supply and demand.

Nominal value is also known as face value or par value. It is the stated worth of an asset. Most likely, this was the value of the asset at the time it was issued, such as cash, bonds and stocks.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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