NOMINAL PRICE Meaning and
Definition
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Nominal price refers to the face value or the stated value of a product, item, or asset, which may not necessarily reflect its true or intrinsic value. It is the price that is officially assigned or listed for a particular item, typically when it is first introduced in the market. This price is often fixed, predetermined, or artificially set and may not always correspond to the market valuation or the actual price at which the item is bought or sold.
The term "nominal" is derived from the Latin word "nomen," meaning name or title. Hence, nominal price represents the nominal or theoretical value given to an item. It is important to note that nominal price does not consider other factors such as supply and demand, competition, quality, or market conditions that may impact the item's price.
Nominal prices are often used in various economic contexts, including finance, investing, and economics. For example, in finance, nominal price can refer to the face value or principal amount of a financial instrument, such as a bond or a share of stock. In investing, nominal price may also be used to describe the initial offering or listing price of a stock during an initial public offering (IPO).
In summary, nominal price represents the stated or official value assigned to an item, disregarding other market factors or fluctuations. It signifies the theoretical or name value of a product, usually at its introduction or issuance, without necessarily reflecting its genuine or current market worth.
Common Misspellings for NOMINAL PRICE
- bominal price
- mominal price
- jominal price
- hominal price
- niminal price
- nkminal price
- nlminal price
- npminal price
- n0minal price
- n9minal price
- noninal price
- nokinal price
- nojinal price
- nomunal price
- nomjnal price
- nomknal price
- nomonal price
- nom9nal price
- nom8nal price
- nomibal price
Etymology of NOMINAL PRICE
The word "nominal" is derived from the Latin word "nominālis", which means "pertaining to a name". It originated from the Latin term "nomen", meaning "name". In English, "nominal" is used to describe something that exists in name or form, but not in reality.
The word "price" has its roots in the Latin word "pretium", meaning "value" or "reward". It ultimately comes from the Proto-Indo-European root "*per-", which means "to traffic in, to sell".
When these two words are combined, "nominal price" refers to a price that is merely symbolic or insignificantly small, rather than reflecting the true value or cost of something.
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