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Nominal value

Nominal value

Nominal value was the fixed value a share previously had, now replaced by quota value.

What is nominal value?

Nominal value was the fixed amount a share was worth under the articles of association. Since the 2005 Companies Act, the concept of quota value is used instead.

 

Nominal value and quota value

Quota value is calculated as the share capital divided by the number of shares. It is affected by events such as a split and a bonus issue, and has in practice replaced the earlier nominal value.

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Henrik Kristensen, NVR
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Related terms

Quota value

Quota value is a limited company's share capital divided by the number of shares.

Share capital

Share capital is the capital the shareholders contribute to a company in exchange for shares.

Bonus issue

A bonus issue raises share capital using the company's own funds, without new capital being added.

Share split

A share split means each share is divided into several shares, without changing the total value.