Par value
Nominal or par value is the stated face amount of a share or debt instrument. Nominal value helps determine the share capital recorded when shares are issued. If 1,000 shares of nominal value 1 are issued for 3 each, the company records 1,000 share capital and 2,000 share premium; the 3 issue price is not nominal value. A share can trade at a market price far above or below its nominal value.
Worked example
1,000 shares with nominal value 1 have nominal capital of 1,000.
Common mistake
Share market value and issue price can differ from par; issue restrictions vary by law.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Supporting | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Supporting | September 2026–June 2027 |