ECONOMICS

COST ACCOUNTING

FINANCIAL TERMINOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
the nominal value or dollar value of a security stated by the issuer
A
Cash value
B
face value
Explanation: 

Detailed explanation-1: -Face value is the dollar value as stated by the issuer of any security when issuing. The nominal value is the fundamental concept of the stock market. This value remains fixed when publicly traded firms offer stocks through the IPOs (Initial Public Offerings).

Detailed explanation-2: -Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, typically in $1, 000 denominations.

Detailed explanation-3: -The nominal value, or book value, of a share, is usually assigned when the stock is issued. Also called the face value or par value, the nominal value of the stock is its redemption price and is normally stated on the front of that security.

Detailed explanation-4: -It is also known as face value. Securities like stocks or bonds are usually issued with a face value. It indicated the minimum value of the financial instrument set by the issuers and stated in the certificate or corporate charter.

Detailed explanation-5: -In economics, the nominal value is the unadjusted value of an asset without taking into account deductions and premiums, such as expenses, taxes, and inflation. It is in contrast to the real value of an asset, which considers deductions and premiums.

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